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Aluminum dives of 7-year highs after the US says it may provide sanctions relief to Russia's giant producer

Gina Heeb   

Aluminum dives of 7-year highs after the US says it may provide sanctions relief to Russia's giant producer
Stock Market1 min read


Aluminum prices dove off multi-year highs Monday morning as the US softened its stance on Russian sanctions that had been threatening supply of the metal.

The metal was down 8.30% to below $2,300 a ton at 9:09 a.m. ET. It had jumped to a seven-year high last week.

The Trump administration announced earlier this month economic penalties on dozens of individuals and companies with ties to the Kremlin. Among those hit was aluminum giant Rusal Co., which is the second-largest supplier of the metal after China.

Supply concerns that had been propping up prices fizzled after the US Treasury Department said it would provide sanctions relief to Rusal if Russian oligarch Oleg Deripaska gave up control of the company.

"RUSAL has felt the impact of U.S. sanctions because of its entanglement with Oleg Deripaska, but the U.S. government is not targeting the hardworking people who depend on RUSAL and its subsidiaries," Treasury Secretary Steve Mnuchin said.

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