EU Considers Additional Import Restrictions on Russian Aluminium
The European Union is reportedly discussing new import restrictions on Russian aluminium as part of its 16th sanctions package against Moscow for the invasion of Ukraine. However, the impact is expected to be limited, as Russian metal continues to find alternative buyers outside sanctioning countries.
LME aluminium prices briefly rose above $2,600 per tonne in mid-January following reports of potential EU sanctions, though they later retreated. The proposed restrictions, still under discussion among member states, would be implemented gradually, with details yet to be finalized. The EU is expected to adopt the new measures next month.
The US and UK imposed bans on Russian aluminium in 2024, while the EU has restricted some products, such as wire, tubes, pipes, and foil, which represent less than 15% of total EU aluminium imports. Russia, the largest aluminium producer outside China, accounts for approximately 5% of global production.
EU imports of Russian aluminium have declined significantly over the past two years due to self-sanctioning by European buyers, now comprising about 6% of total European imports, down from 2022 levels. The shortfall has been compensated by increased imports from the Middle East, India, and Southeast Asia. Meanwhile, Russia has increased shipments to China, which imported 263,000 tonnes of primary aluminium from Russia in the first three quarters of 2024, making up 33% of its total imports from Russia last year. This trend is expected to continue in 2025.
China’s aluminium production is nearing its annual capacity cap of 45 million tonnes, with output currently around 43 million tonnes. Favorable hydroelectric conditions in Yunnan province have enabled full capacity operations, limiting further growth potential. Despite record production, China remains a net aluminium importer.
