BREAKING: Aluminium surges nearly 5.0% as US considers banning imports from Russia

5:04 PM October 12, 2022

White House is considering a ban on Russian aluminium in response to Kremlin military escalation in Ukraine. This metal was not subject to earlier sanctions due to its importance in production processes in many industries. The White House is taking into account three options: an outright ban, increasing tariffs to levels so punitive they would impose an effective ban, or sanctioning the company that produces the metal, according to Bloomberg.

Any of these actions could force key industries into rush for replacements, especially that Alcoa, the largest US aluminum producer, has recently warned investors that high energy and raw material costs and a fall in aluminum prices are putting pressure on margins. Century Aluminum, the second largest domestic producer, announced in June that it would close one of its US plants and lay off over 600 workers due to rising energy costs.

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Aluminum is trading around the $2,300 per ton, down almost 50% from a record peak reached in March. Price rose sharply during today's session, however only a decisive break above the major resistance zone around $2400 would indicate a potential shift of market sentiment. This level is marked with an upper limit of the 1:1 structure, 61.8% Fibonacci retracement of the upward move launched in March 2020 and local downward trendline. Source: xStation5


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