Trade Body Considers Calling for EU Ban on Russian Aluminum, But Not Rusal

SEATTLE (Scrap Monster): Europe’s aluminum industry group has considered lobbying for European Union sanctions on Russian aluminum, but would oppose specifically targeting the country’s largest producer Rusal according to a document sent to members.

The head of trade group European Aluminum said it prepared the internal memorandum for planning purposes and had no information about any imminent EU sanctions.

The European Commission declined to comment.

The document, dated July 2023 and seen by Reuters, said members of European Aluminum had discussed the possibility of “actively calling for EU sanctions on Russian aluminum.”

But while substituting other supply for Russian ingots would be feasible in Europe, the wide global spread of Rusal’s operations makes sanctions on that company more problematic, the memorandum said.

“European Aluminum (therefore) recommends avoiding that EU sanctions would target Rusal as a company,” the association said.

Rusal, which did not reply to a request for comment, produced 4 million metric tons of primary aluminum last year, about 6 percent of global supply.

The document noted that Rusal owns Ireland’s Aughinish, the EU’s largest refinery of raw material alumina, as well as the Kubal smelter in Sweden.

The benchmark aluminum price on the London Metal Exchange was up 0.2 percent at $2,282.50 a metric ton in afternoon trading, having declined by 4 percent so far this year.

The US -based Aluminum Association trade group said it had watched Russia’s aggression in Ukraine with “growing alarm”, and had been in touch with European Aluminum.

The industry supported any efforts by the US  government and allies to address the ongoing crisis, “including new tariffs on aluminum imports from Russia announced earlier this year,” it said in a statement.

Russia accounts for less than 3 percent of US  aluminum imports.

The EU has so far restricted imports of only a limited number of specific aluminum products from Russia – aluminum plates, sheets or strip with thickness exceeding 0.2 mm.

Its latest sanctions package was adopted in June and active discussion on another package are not expected in the near term.

In February the United States announced plans to impose a 200 percent tariff on aluminum and derivatives produced in Russia while in May, Britain published plans to ban imports of Russian aluminum along with diamonds, copper and nickel.

“Our members asked us to consider the issue and this is purely an internal exercise,” European Aluminum Director General Paul Voss told Reuters. “There is no suggestion at all as far as I’m aware that the Commission is planning any new sanctions at this stage.”

 Courtesy: www.malaya.com.ph