The United States of America have announced 200% tariffs on “aluminium” and “derivative aluminium” from Russia, starting on the 10th March 2023.
The White House issued a statement further detailing the nature of the sanctions against Russian aluminium noting that the trade of Russian aluminium will be restricted and face record high sanctions:
“The product of Russia shall be subject to a 200 percent ad valorem rate of duty with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern standard time on March 10, 2023.”
The inclusion of primary aluminium in the 200% rate of duty has also been noted:
“All imports of derivative aluminium articles specified in the Annex to this proclamation where any amount of primary aluminium used in the manufacture of the derivative aluminium articles is smelted in Russia, or the derivative aluminium articles are cast in Russia, shall be subject to a 200 percent ad valorem rate of duty with respect to goods entered for consumption…”
The London Metal Exchange (LME) offered a statement, on the 28th February, in response to the US sanctions. In the statement, the LME expressed its concerns for a “possible market disruption and disorderly market conditions,” and their priority “to minimise the risk of price dislocation.” In response to the anxiety, “The LME [stated] is acting immediately, rather than waiting for the effective date of the increased tariffs” by announcing the “immediate suspension of the warranting, applicable only to LME-listed warehouses located in the US, of any new primary aluminium, copper, lead, nickel or aluminium alloy (in the form of NASAAC).”
Following these announcements, the new sanctions triggered a rise in the price of aluminium on the LME, further adding to the concerns felt by the industry.
The sanctions came to light following the one year anniversary of the Russian invasion of Ukraine.
Rusal, a Russian aluminium company, is yet to make a statement on the sanctions which will be implemented by the USA.
It is apparent that market disruption will be intensified following the announcement of these tariffs; make sure to follow this story by visiting www.aluminiumtoday.com
By Zahra Awan, Editorial Assistant