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Early last week Australia banned exports of alumina, a key ingredient for aluminum production, to Russia, according to Reuters. At that time, it was unclear if the Rusal could access alumina produced from their Australian joint venture with Rio Tinto. However, anonymous sources cited by Bloomberg reported that Rusal cannot source alumina from the JV, nor ship or sell it elsewhere. It is currently unclear what will happen to Rusal’s portion of production. In 2020, Rusal’s portion of production was 740,000 mt, according to their annual report. This moves hurts both Rusal’s revenue potential and could also tighten the global aluminum supply chain. |
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Consumers who are concerned about their aluminum input costs might consider purchasing swaps or call options. Please note losses might occur if swap prices decline or if options premiums lose intrinsic or time value. Please contact AEGIS for specific strategies that fit your operations. (3/29/22) |
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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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Today's Charts |
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AEGIS Insights |
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03/23/2022: AEGIS Factor Matrices: Most important variables affecting metals prices 03/23/2022: Russian Metals Production and Related News: Most Recent Developments (AEGIS Reference) |
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| Important Headlines | ||
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3/28/2022: METALS-Copper, nickel fall on China's COVID curbs, firm U.S. dollar 3/28/2022: Rusal can’t access alumina from Australia JV as pressure builds |
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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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