According to the financial Times, the U.S. Treasury has made two important announcements this week, the first is that if Oleg Derϊpaska sold his share to Rusal, he could reduce or lift the sanctions on the operation. The second announcement was a postponement until 23 October for US operations and those dealing with them to complete their affairs with the aluminium producer.
As a result, the perceived tightness created by Rusal, which has essentially been frozen from the market, evaporated-for the time being at least-and the price fell to the high $2,200, about 10% above the aluminum level before the sanctions were announced.
The movement of the Treasury is considered as an assumption that it wrongly judged the impact on America’s aluminum market and the damage that this disturbance would cause to the supply chain.
