sanctions against Russian metals will exacerbate price instability – Kommersant
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Sanctions imposed by the UK and the US on Russian aluminum, copper and nickel will exacerbate price instability, Norilsk Nickel said. The company believes that the new restrictions will also increase uncertainty in the supply chain and trigger an increase in the final price for consumers. Despite this, the company promised to fulfill all existing contractual obligations to customers.
“Nornickel” (MOEX: GMKN) regrets the decision as it will exacerbate price volatility, increase uncertainty in the supply chain and push up the final price, which will negatively impact consumers of these metals around the world. In addition, the risk of market disruptions will increase, as the liquidity of metals will decrease and the cost of financing critical industrial supply chains will increase,” the company said in a commentary (available to Kommersant).
On April 12, the United States and Great Britain banned the import of Russian aluminum, copper and nickel, as well as their trading on the Chicago Mercantile Exchange (CME) and the London Metal Exchange (LME). On the same day, the price of aluminum on the LME jumped 9.4%. This was the highest since 1987. noted Bloomberg. Also decreased stock quotes of Norilsk Nickel and Rusal. The latter, according to Kommersant sources, may lose 1.5 million tons of exports.
Details – in the material “Kommersant” “Rusal assessed the consequences of US sanctions”.
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