Weekly round-up: Australia sanctions may hit Russia aluminium production

One of the top alumina exporters in the world, Australia, announced sanctions on the export of alumina to Russia. As per a few reports, Australia accounts for roughly 20% of the alumina supply to Russia which is the primary product for smelting to process aluminum. It may hamper Russia’s aluminium production capacity which accounts for nearly 6% of the global aluminium supply, as per the International Aluminium Institute (IAI).

Over the week, LME 3-month prices were stable despite a fall in stock prices. Prices fell by 2.92% while LME stocks dipped by 5.38% to 715,225 tonnes (t), as recorded by SteelMint. Market participants witnessed contraction in domestic scrap prices at the beginning of the week although these  rebounded later and firmed up gradually in line with rising exchange prices.

LME again revised nickel trading limit from 12% to 15% when prices touched the lowest limit, which was $36,915 per t as on 18 Mar’22. There were limited variations in other base metals. Trade participants are hopeful regarding the price trend in the near term and domestic buying inquiries are expected to resume post-festive holidays. There are expectations that regular transactions will also resume soon.