The LME aluminium prices on 11th October 2022 witnessed a glide following Bloomberg's report that the United States is considering a complete ban on Russian aluminium.
The ban on Russian aluminium jeopardizes conquering a global market already stumbling from several disarrays while emphasizing if the world's largest aluminium-producing nation, China, could infuse the supply gap.
According to people familiar with the deliberations, the US administration is considering the possibility of incorporating sanctions on the Russian aluminium giant as the White House looks to chastise Russia for escalating conflict with Ukraine. These steps would add to a deafening year of price dangling, supply haul and demand unrest in the initiation of Russia-Ukraine's geopolitical crisis from February 2022.
Joe Biden's administration is contemplating three options for action against Russia: a complete ban on aluminium, increasing tariffs to the point of an effective ban and imposing sanctions against Rusal.
Primarily, the US has a considerable demand for aluminium in manufacturing its metal and importing it from other nations. The US imports a large amount of aluminium from Canada, China, Mexico, Bahrain, and UAE. Notwithstanding the US imports less quantity of aluminium from Russia, Rusal remains the world's second-largest aluminium producer. Above all, the US has been imposing sanctions against Russia ever since the Ukraine-Russia geopolitical crisis started. The US government has also provided military and economic assistance to Ukraine.
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