Europe to Battle with US for Aluminium

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European and U.S. buyers are poised to fiercely compete for aluminium from Middle Eastern sources if the European Union moves forward with a ban on Russian metal in the coming months.

This scenario could trigger price surges reminiscent of those seen in 2018 when sanctions were imposed on Rusal, a major Russian aluminium producer.

The anticipated race for aluminium from Middle Eastern countries, particularly the United Arab Emirates and Bahrain, is expected to drive up inflation for Western companies operating in the transport, packaging, and construction sectors. These industries are already grappling with elevated raw material and labor costs.

Aluminium holds strategic importance as a key component in electric vehicles, offering significant weight advantages over steel and becoming the preferred metal for various EV parts. As the demand for electric vehicles continues to rise, the significance of aluminium in automotive manufacturing becomes even more pronounced.

Source: Reuters

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