Force majeure pressure drives aluminium prices to 6-year high

FxPro Forex Analysis: Trump Imposing Sanctions to Corner New Markets

FxPro Forex Analysis: Trump Imposing Sanctions to Corner New Markets

Rio Tinto is to declare force majeure on certain customer contracts following USA imposed sanctions on Rio partner Rusal, a Russian aluminum producer.

JAPAN TRADERS: Major Japanese trading houses have asked Rusal to stop shipping refined aluminium and other products and are scrambling to secure metal elsewhere, industry sources said.

Aluminum prices have jumped to a near seven-year high on Tuesday as the impact of U.S. sanctions against Russian Federation continues to impact the global supply of the industrial metal.

"If you look at the scope of Rusal supply, they were a very cost-efficient supplier and a very substantial one, and they were well meshed into a lot of other manufacturers downstream", Natixis analyst Cameron Karami said.

Aluminum prices jump more than 4% to a fresh seven-year high above $2,500/metric ton and nickel prices soar 11% in its biggest one-day jump since 2009 on fears that USA sanctions against Russian Federation will widen.

RUSAL: US sanctions on Russian entities are hitting companies controlled by tycoon Oleg Deripaska, including aluminium giant Rusal.

There was little impact on base metals prices from China's surprise move to cut banks' reserve requirement ratio (RRR), which only lifted Chinese steel, coke and coking coal futures sharply.

2 arrested in morning drug raid
On Wednesday morning, a police team went to a station in the west to detain the four, but they were out on patrol. The man was taken to Chatham-Kent Police Service Headquarters and later released with a future court date in May.

Rio is reviewing Rusal's 20 percent stake in the Queensland Alumina refinery, Rusal's supply and offtake arrangements, bauxite sales to Rusal's refinery in Ireland and offtake contracts for alumina.

Rio Tinto chief executive J-S Jacques says the company delivered "a solid operational performance across most commodities in the first quarter of 2018", despite Rio seeing widespread production declines versus the previous quarter.

"Adjustments may also be made as a effect of the U.S. sanctions", Rio Tinto said in its quarterly production report.

ALUMINIUM SHEET: The U.S. Commerce Department said it has made a preliminary determination that aluminium sheet imports from China are being subsidized.

INDONESIA EXPORTS: Indonesia exported 8,637,595 tonnes of nickel ore up to March 31, 2018 since its ore export policy was revised in January, 2017, government data showed.

COPPER: LME copper shed 0.5 percent to finish at $6,877 a tonne after on-warrant LME stocks, those not earmarked for delivery, climbed 10,950 tonnes to 313,450 tonnes MCUSTX-TOTAL, indicating healthy supplies.

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