Force majeure pressure drives aluminium prices to 6-year high
Force majeure pressure on Monday drove aluminium prices to a new six-year peak as the dollar fell after Rio Tinto made declarations on some of its customer contracts following US sanctions on its partner Rusal, according to a news service report monitored by businessamlive.
The benchmark on the London Metal Exchange rose 2.7 percent to $2,347 per tonne in official rings.
Prices earlier touched their highest since March 2012 at $2,366.50.
According to Eugen Weinberg, Commerzbank head of commodities research, Aluminium would keep gaining on likely forced majeures declaration by other traders since Russiaâ€™s Rusal was one of the worldâ€™s largest producers.
Rio Tinto also said it was reviewing Rusalâ€™s 20 percent stake in the Queensland Alumina refinery, Rusalâ€™s supply and offtake arrangements, bauxite sales to Rusalâ€™s refinery in Ireland and offtake contracts for alumina.
Rio supplies Aughinish Alumina with bauxite, which is then turned into alumina. While sources said that Aughinish Alumina, Europeâ€™s largest alumina refinery, which was acquired by Rusal in 2007, has enough bauxite to last until the end of June, Rioâ€™s decision has added to concerns over the future of the operation on the Shannon estuary.
Taoiseach Leo Varadkar on Friday held a private meeting with management of the Russian-owned alumina producing plant in Askeaton, Co Limerick, as â€œconcernâ€� mounted over the plantâ€™s continued operations, and the future of its 450 employees.
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