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South Korea Faces Import Uncertainty Amid US-UK Sanctions on Russia

theguru Views  

South Korea had aluminum imports from Russia, reaching 39,100 tons in March.
Marking a 45% increase in MoM, the highest level since June 2012.
Anticipated to face the impact of sanctions by the US and UK,
Companies such as Namsun Aluminum are in discussions.

South Korea’s imports of Russian aluminum have hit a 12-year high. However, recent sanctions on Russian metals by the United States and the United Kingdom are expected to have some impact.

According to RIA Novosti, on the 23rd, South Korea imported 39,100 tons of Russian aluminum worth $90.9 million in March. This is a 45% increase month over month and the highest since June 2012, when it reached 54,300 tons.

Australia, the largest importer, fell to second place with 34,900 tons. India followed in third place with 22,000 tons.

However, the U.S. and U.K. sanctions against Russia are expected to impact South Korea’s imports of Russian aluminum.

Previously, the U.S. and U.K. governments decided to jointly impose additional sanctions on Russia, banning the import of new quantities of Russian metals produced after the 13th. They also blocked transactions at the Chicago Mercantile Exchange (CME) and the London Metal Exchange (LME). However, transactions and inventory held before the 13th were exempt from these regulations.

LME metal traders predict that aluminum, copper, and nickel prices will surge when LME trading resumes. As of the end of March, Russian metals accounted for 91% of LME aluminum stocks, 62% of copper, and 36% of nickel.

There are also predictions that Korean companies related to aluminum will inevitably be affected. Namely, Namsun Aluminum, which is involved in aluminum and automotive businesses, as well as Joil Aluminum, a seller of aluminum-related products, Sama Aluminum, a producer of aluminum foil, PJ Metals, a producer of aluminum desulfurizers, and Aluko, a manufacturer of extruded aluminum products, are mentioned.

theguru
content@viewusglobal.com

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