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Yesterday afternoon, US President Biden announced sanctions on several large Russian banks and people closely aligned to Russian President Vladimir Putin; however, no sanctions against Russian aluminum producers were announced. In the weeks prior to the Russian invasion of Ukraine, White House officials had met with US aluminum industry representatives and at that time stated there was no plan to sanction Russian aluminum producers, according to Bloomberg. In 2020, Russia was the fifth-largest supplier of aluminum to the US, representing about 3% of our imports, according to the USGS. The US represented nearly 7% of Rusal’s (the state-owned aluminum producer) revenue in 2020, according to their annual report. Similarly, no European allies have sanctioned Russian aluminum producers. Europe imports nearly 9% of their aluminum tubes and pipes from Russia, according to trendeconomy.com. Nearly 41% of Rusal’s revenue in 2020 came from Europe, according to their annual report. Rusal does not give regional volume breakdowns in their annual report, only revenue by region. Sanctions by either the US or Europe could jeopardize global supply and send LME prices and US or European premiums higher. (2/25/2022)
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Note: Clients with AEGIS Platform access can see this and other research, plus hedge portfolio reporting and tools here. |
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AEGIS Insights |
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02/16/2022: AEGIS Factor Matrices: Most important variables affecting metals prices 02/15/2022: Section 232 Tariffs: Most relevant developments (AEGIS Reference) 11/30/2021: Will the Omicron COVID Variant Impact South African Metals Production or Exports? |
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| Important Headlines | ||
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2/24/2022: Stocks slump, oil rips past $100 as Russia invades Ukraine 2/23/2022: Russia’s Putin announces military operation in Ukraine 2/23/2022: Statement by President Biden on Nord Stream 2 2/22/2022: Nickel price hits decade high as Ukraine tensions fuel supply concerns 2/22/2022: Biden responds with limited sanctions after Putin recognizes breakaway Ukraine regions 2/22/2022: U.S. imposes sanctions after Putin recognizes breakaway Ukraine regions 2/21/2022: Statement by Press Secretary Jen Psaki on Russian Announcement on Eastern Ukraine 2/21/2022: Aluminum shortages to deter blanket sanctions on Rusal |
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| Important Disclosure: Indicative prices are provided for information purposes only, and do not represent a commitment from AEGIS Hedging Solutions LLC ("Aegis") to assist any client to transact at those prices, or at any price, in the future. Aegis makes no guarantee to the accuracy or completeness of such information. Aegis and/or its trading principals do not offer a trading program to clients, nor do they propose guiding or directing a commodity interest account for any client based on any such trading program.
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