Aluminum Surges on EU Ban Proposal, Metals Mixed Amid Trade War Concerns
Aluminum prices climbed in London after the European Union (EU) prepared a proposal to gradually phase out Russian imports.
Under the plan, EU buyers could import 275,000 metric tons of Russian aluminum over a one-year period before a complete ban. The proposal aims to mitigate potential supply disruptions for key products.
Calls for an EU ban on Russian aluminum intensified following the February 2022 invasion of Ukraine. Russian aluminum shipments to the EU have declined as manufacturers sought alternative suppliers.
Despite objections from some buyers and member states, the EU has moved forward with the sanctions package. In 2024, the EU imported approximately 320,000 tons of unwrought aluminum from Russia, accounting for 6% of total imports.
On the London Metal Exchange, aluminum prices rose 2% to $2,624.50 per ton. Other metals traded mixed, with copper gaining 0.6% and lead rising 1.7%.
Metal traders remain wary of repercussions from the US-led trade war. The White House has reaffirmed that tariffs on China, Canada, and Mexico will be implemented on February 1. Additionally, President Donald Trump has expressed plans for broader tariffs.
Contributors: Yvonne Yue Li