North American producers suffering from the unrestricted flow of Russian aluminium into the US: Jakob Stausholm, Rio Tinto

The chief executive of Rio Tinto, Jakob Stausholm, is concerned about the unshackled flow of Russian aluminium into the US, which is decreasing the competitiveness of North American producers.

According to Stausholm, Russian aluminium imports remain exempt from US sanctions, whereas allies like Australia are still subject to Trump-era restrictions. Since taking the helm of Rio at the beginning of 2021, he has been extraordinarily outspoken about the aluminium industry.

As the US trade data shows Russia was the third-largest aluminium exporter to the US in August, the warning from the head of one of the world's largest aluminium producers is timely. Even as worldwide buyers refused to purchase Russian metal due to Ukraine-Russia geopolitical crisis,  Russian imports last month were up almost 60% from April levels.

Across Europe, energy prices have surged, and inflation has impacted supply-chain issues, lowering aluminium prices by more than 20% this year. The shipment cost of aluminium in the US is at its lowest level since December, signalling a decline in demand for appliances, automobiles, and window frames due to uncertain economic conditions.

Stausholm said, "It's challenging to have a profitable aluminium industry in North America because Russian aluminium is flowing in."

Right now, we have the lowest aluminium price this year, and you would have thought the Russia-Ukraine crisis would have led to higher prices in aluminium."

The Biden administration has avoided sanctions against Russian aluminium imports for fear of choking off one of its most important suppliers. As the world's second-largest metal producer, Russia supplies about 10% of total US metal imports.

Rio Tinto has significant assets in Canada and is North America's largest aluminium producer. Canadian aluminium accounts for half of the US's aluminium consumption.

Stausholm added, "We want to ensure that our policy towards Russia is transparent to lawmakers. In the wake of the energy crisis and global slowdown, the US and European producers continue to shut down unprofitable smelter capacity.