Agency: RUSAL’s ability to do business to stabilize aluminum price

MOSCOW, Sep 20 (PRIME) -- The U.S. Treasury's decision that Russian aluminum giant UC RUSAL can enter new transactions with existing customers in 2019 is likely to steady aluminum prices as it removes some uncertainty over the company's metal deliveries, international rating agency Fitch said in a statement on Thursday.

“The sanctions against RUSAL are among the main short-term drivers for global aluminum prices with the company's absence from the market pushing prices towards U.S. $3,000 a tonne,” the agency said.

“Should RUSAL have been unable to renew (its delivery) contracts, a significant part of its aluminum would have been withdrawn from the market. There was also a risk that the company would have been unable to ship raw materials to refineries and smelters. This could have forced its smelters and refineries to curtail production, reducing available aluminum further and pushing up aluminum prices.”

Earlier in September, the U.S. Treasury said it would allow customers to negotiate some new contracts with the company.

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