Economics
Aluminum Seen Facing ‘Doomsday’ If Rusal Sanctions Proceed
- Market outside China is already facing shortage in supplies
- Price jump would spur buyers to seek alternative materials
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Aluminum faces a “doomsday scenario” if the U.S. proceeds with sanctions on United Co. Rusal in October, according to Wood Mackenzie Ltd., which says prices could exceed their seven-year highs in April.
The market outside China is already in deficit, and would go “into a massive shortage” if a producer the size of Rusal can’t supply metal, Julian Kettle, vice chairman of metals and mining, said in an interview in Singapore. “Prices will move to a level where you will get demand destruction” as buyers start switching to alternative materials, he said.