April 7, 2022

Rusal’s aluminum raw materials shipments from Guinea had been stopped after Russia invaded Ukraine. Refinitiv shipping data indicated that Rusal’s first bauxite shipment from Guinea since Saturday, March 12 left the Kamsar port on Tuesday, April 5, according to Reuters. Bauxite is the ore from which aluminum is produced.  Bauxite ore shipments from the Kamsar port are mainly shipped to Rusal’s alumina plant in Ireland. Rusal’s mining operations in Guinea represented approximately 50% of the company’s bauxite production, according to the 2021 operating results released last week.

Consumers who are concerned about their aluminum input costs should consider financial swaps or purchasing call options. Such positions are standard for consumer hedging, but they can result in opportunity costs or cash costs if metal prices decline. Please contact AEGIS for specific strategies that fit your operations. (4/7/22)

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