GERMANY (OBSERVATORY) – New American sanctions, among other things, affected the Russian concern Rusal, which is one of the largest aluminum producers in the world. As a result, prices for the corresponding raw materials have risen sharply, and German industrial companies have calculated that their production is threatened by a dangerous shortage of aluminum. The deficit will also be felt by such large industries as the production of cars, the German magazine Der Spiegel notes.
The German industry faces a dangerous shortage of aluminum, the German magazine Der Spiegel reports. The reason is American sanctions of April 6, which particularly affected the affairs of the Russian concern Rusal, the largest aluminum producer outside of China.
As reported in the article, the embargo increased prices for the intermediate product of production – aluminum oxide – increased by 26% during the week, approaching the 12-year maximum.
Almost a third of the raw aluminum, which is imported by the German industry, Germany buys from Russia and, to a large extent, from the “Rusal” concern. In addition, his subsidiary in Ireland plays a decisive role in the market.
According to a report prepared by the German industry federation of metal producers Wirtschaftsvereinigung Metalle, it is indispensable for the supply of Europe with aluminum oxide. The German Federation cautions that sanctions have a significant impact on trade flows, and this will be felt at all stages of the supply chain.
The reliability of supply and the predictability of price dynamics can now not be guaranteed, and this will include, among other things, large resource-purchasing industries, such as automobile production. The association, representing the interests of the German metallurgical companies, calls on politicians to find a solution as soon as possible, which will ensure the reliability of supplies of raw materials needed for the industry. Otherwise, the entire industrial production in Germany will suffer, Der Spiegel underlines.