How imposed sanctions on Russia affecting the market sentiments of Bauxite
- 05-Apr-2022 6:47 PM
- Journalist: Robert Hume
The sanctions imposed by Australia over the special military operations conducted over Ukraine played a vital role in piling up pressure on Aluminum and Bauxite prices. As Australia exports nearly 20% of the raw material, consisting of mainly Aluminum and Bauxite, to Russia, its sanctions have pressurized the supplies to Russia. Due to these sanctions, the whole supply chain of the European nation for Aluminium was affected. Thus, European market players are finding a new source for imports to fulfill their demands for Aluminium and Bauxite.
The extended hostilities between Eastern European nations and sanctions imposed on Russia affected the whole supply chain of Aluminium, besides primarily including crude oil, energy, and several other metals. These supply disruptions in the value chain caused severe inflation in the quotations of raw materials, mainly metals. In response, the Bauxite prices were also soared due to lower exports and supply shortages.
In India, Bauxite market sentiments witnessed a slight growth since January. The rising coal and crude oil prices mainly backed the soaring market price for imports. However, the domestic demand for Bauxite in India is nearly constant. The price of Metallurgical Grade Bauxite for Ex-Gangavaram (India) settled at USD 57.78 per tonne. The resurgence of COVID-19 in China after the market balancing post the turbulence of Spring festival 2022 forced Chinese Authorities to announce curbs to control the spread of pandemic and affected Aluminium production. In addition, the COVID- related restrictions and imposition of strict rules caused logistics interruptions. However, the Chinese market players claim that China may play a vital role in exporting Bauxite to European nations by cutting its domestic demand.
As per ChemAnalyst," The market demand for Bauxite is expected to be slightly increased." The imposed sanctions will take time to diminish. The prices for raw materials and other metals will continue to soar.