US wants to lift sanctions against Rusal

Commerzbank Commodity Research reports that the Federal Reserve Fed has raised the interest rates again on December 19, 2018. However, given the global slowdown in growth and heightened financial market volatility, the institute will be more cautious for next year: FOMC members have reduced their interest rate hike expectations for 2019 from three to two steps. However, US stock markets subsequently came under pressure for fear of excessive tightening of monetary policy and bond yields fell.

According to Commerzbank, the aluminum price of industrial metals has fallen to just over $ 1,900 a ton, the lowest since early August 2017. The US Treasury Department has on 19.12. announced that it would lift its sanctions on Russia's largest aluminum producer, Rusal. The Russian billionaire Deripaska, who has controlled Rusal so far on a vehicle, wants to give up pressure from the United States a large part of its shares and also waives some voting rights. Sanctions against Rusal are expected to be lifted in 30 days, according to the US Treasury Department, unless the US Congress blocks this move.

The London Metal Exchange wants - as soon as the US sanctions are no longer in force - also set aside their restrictions on Rusal. Then it can be traded again without restriction with the material of Rusal and the contracts are deposited with this. The sanctions against RUSAL in early April were - according to the Commerzbank - a US penalty for Russia's involvement in the recent presidential elections and Russian actions in the Crimea. In the meantime, they had triggered strong upheavals on the aluminum market.

With the announced abolition of sanctions, the market will again have more material available. The speaks against higher aluminum prices. Due to the recent noticeable drop in prices, the Chinese aluminum manufacturers want to discuss joint production cuts.

Source: Commerzbank Research, photo: fotoalia