Alcoa calls for government sanctions on Russian-origin aluminum

In Alcoa’s 3rd Quarter 2022 conference call to discuss financial results, Alcoa President and CEO Roy Harvey provided some commentary regarding the aluminum market and the need for government sanctions on Russian-origin metal. [Full conference call transcript]

Today’s aluminum market has been significantly impacted by the European energy crisis, which is rooted in Russia’s invasion of Ukraine.

Due to the increased power costs in Europe, it has been reported that more than one million metric tons of aluminum production have been taken offline, with another 1,000,000 metric tons under threat.

The combination of increased uncertainty, weakening European demand, and the global energy market distortions, created by the ongoing Russian aggression in Ukraine, demonstrate how quickly our energy markets, and therefore the aluminum industry, can be impacted.

In March of this year, our Company made the proactive decision to cease buying raw materials from, or selling our products to, Russian businesses. That had an adverse financial impact on our business, but it was the right decision to make. And now we are seeing an increasing number of customers implement this same policy.

We believe governments should consider sanctions on Russian metal, as the distortions in the energy market can be directly linked to the invasion of Ukraine. And in the meantime, Russian companies continue to produce and sell their metal, while North American and European producers are curtailing smelters amidst declining aluminum prices, skyrocketing energy costs and supply chain issues.

And thus, we believe urgent action is necessary by the U.S. and its allies.