After the combat of 2 weeks, which was started because of the U.S. sanction against United Company Rusal, the metal industry has finally prepared itself for more chaos. Traders predicted that the Russian aluminum giants will close their plants in Sweden and Jamaica in the near future in order to safe-guard themselves.
On Monday, April 23, the U.S. Treasury has confirmed that they will not allow the companies to screw up. The Treasury secretary, Steven Mnuchin, has asserted that the U.S. Government is not targeting hardworking people who are dependent on the Rusal and its subsidiaries. This stand of the Treasury has relaxed many international companies for at least next 6 months so that they can resolve the key issues with Rusal. It has helped consumers, suppliers, and shipping companies to continue their business with Rusal with the existing contracts.
The Impact of Sanction
The company’s shares have risen to 37% in Hong Cong and 18% in Moscow on Tuesday. However, the aluminum rates are going on reverse track and dropped by 0.9% in London, and the extreme fall was continued on Monday, April 23, up to 7.1%, which is the biggest fall since the year 2010. This unexpected result has showed the impact of the sanction on the aluminum market.
While forecasting about the future trends, Oliver Nugent, who is a metals analyst at Dutch bank ING Groep NV, has stated that the market is undoubtedly taking this sanction as a light at the end of tunnel for Rusal.
The aluminum prices touched to the highest levels last week since mid-2011 because of the fear that the global market may face scarcity as a result of the U.S. sanctions. Wood Mackenzie analysts asserted that the Treasury’s announcement provides the much-needed breathing space for the aluminum market globally.
Before turning out to be a full-time writer and editor, James Tidwell was a blogger who wrote his outlooks and viewpoints relating to Entertainment and Sports. Owing to his interest and absolute fineness of playing with world beautifully, he was appointed to dabble in Entertainment and Sports world.