The sanctions could affect at least 1.5 million tons of annual sales, compared to production of 3.8 million tons last year.
Russian aluminum giant Rusal fears that up to 36% of its sales could be at risk as a result of sanctions imposed by the US and UK. Bloomberg reported this, citing a source close to the company.
It said the sanctions could affect at least 1.5 million tons of annual sales, compared to production of 3.8 million tons last year and sales of 4.2 million tons the year before.
“As a consequence, Rusal may be forced to cut production,” the source said, comparing the situation to the global financial crisis, which hit demand suddenly in 2008.
As the publication writes, this assessment is contrary to the opinion of most Western analysts, who argue that the sanctions against Russian metals introduced on Friday will have a limited effect on supply and demand in the market of world.
As you know, the United States and Great Britain have banned the supply of new aluminum, copper and nickel to Russian production on exchanges, including the London Metal Exchange, but sanctions do not prohibit the sale of metal from producers in traders or consumers. .
One of Rusal’s biggest clients is Glencore, which has a long-standing contract to buy large volumes of its products.
Rusal did not rule out that Glencore would use the sanctions to exercise force majeure, or try to negotiate a lower price for the metal.
We remind you that the United States has imposed sanctions against several companies from the Russian Federation, China and the UAE. Japan has also reportedly extended trade sanctions against the Russian Federation.
As reported, the Russian Federation and China trade copper under the guise of scrap metal to avoid sanctions.
Source: korrespondent
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