Aluminum Soars On "Panic Buying" Amid Fears Of Imminent Rusal Collapse
“If Rusal has sales issues, that will definitely affect the price,” Kirill Chuyko, BCS Global Markets’ chief of research, said by telephone. “So far they will stop sales to the U.S., which were anyway hurt by Trump’s tariffs. But if the issue is wider, it will be more difficult for Rusal to re-route volumes.”
Needless to say, Deripaska - who has been accused of being part of Trump's "collusion" inner circle, called the reasons “groundless, ridiculous and absurd.”
Meanwhile, the Russian Foreign Ministry said it was working on a response: “We have a whole list of possible measures that are being studied."
Until then, however, questions have risen how Europe will procure its much needed aluminum used in virtually all high-tech industries, now that Rusal's products are "toxic" for all US allies : note that Europe is Rusal's biggest buyer by a wide margin, followed by Asian customers.
US sanctions could lead to other, unexpected downstream effects. As Bloomberg points out, the move also raises questions for Glencore and its billionaire chief Ivan Glasenberg: the commodity giant is one of Rusal’s top shareholders and the biggest buyer of its metal, while Glasenberg sits on the board.