Aluminum Prices Soar in 2018 | What Now? | Eccomelt356.2

//Aluminum Prices Soar in 2018 | What Now? | Eccomelt356.2

Aluminum Prices Soar in 2018 | What Now? | Eccomelt356.2

In March, 2018, the President of the United States, Donald Trump announced sanctions against Russia, citing the latter’s interference in the 2016 presidential elections. In a statement made to the press, Treasury Secretary defined the sanctions as “confronting and countering malign Russian cyber activity, including their attempted interference in U.S. elections, destructive cyber-attacks, and intrusions targeting critical infrastructure.” Under the sanctions, Americans are forbidden from making purchases or transactions with companies in Russia.

Among the individuals and entities sanctioned was Rusal, a company controlled by Russian oligarch Oleg Deripaska. As a result, shares in Rusal plummeted by 50% in Hong Kong. EN+ Group, one of the companies that owns and controls Rusal, also suffered a combined 54% stock decline on April 6 and April 9, 2018.

Rusal is the second largest aluminum producer in the world. It accounts for approximately 9% of the world’s aluminum output and 7% of the world’s alumina production.  It also operates 15 alumina smelters, 12 alumina refineries and owns 8 bauxite mines. In 2017, it boasted sales of $10 billion, with approximately 15% of the profits coming from the United States. [source]

The sanctions against Rusal are a blow to Americans and consumers of aluminum. The tariff announcement made earlier this year by President Trump on all aluminum imports to the United States has not helped the situation, either. Aluminum prices have increased by as much as 10% since the announcement, their highest level in 6 years. [source] In the short term, the hike in aluminum costs will not affect the price of consumer products made from aluminum (i.e. tire rims and soda cans). However, if the sanctions are sustained in the long run, analysts are predicting a substantial increase in prices of consumer staples, such as sodas, aluminum foil, vehicles etc.

Eccomelt356.2 | Eco Friendly Foundry Alloy Substitute for A356.2 ingot, sow and T-bar

The sanctions against Russia when combined with tariffs imposed on all aluminum imports earlier this year undoubtedly creates a shortage in the metal’s supply.  Although it is a cause for concern, consumers should not forget that aluminum is a recyclable metal and the supply of recycled aluminum is ample. The majority of all of the aluminum which has ever been produced is still in use today because aluminum can be recycled infinitely with no loss to its original quality.

Recycled aluminum can be found in cars, bicycles, airplanes, building facades, doors, and soda cans. Any product that can be fabricated from brand new aluminum can easily be made from recycled aluminum. Accordingly, should the price of raw aluminum increase substantially to the point that the price of consumer staples increases as well, there are options for consumers. One of those options is Eccomelt.

As a manufacturer of Eccomelt356.2, a substitute for A356.2 ingot, sow and t-bar, the product remains unaffected by the newly proposed tariffs and sanctions. In fact, the A356.2 Substitute is proudly ‘Made in America” from locally sourced, recycled products. The Eccomelt factory is based in Manchester, Georgia, U.S.A. which helps provide an eco-friendly, economical and good-quality delivery at excellent prices.

 Eccomelt356.2 | Direct Substitute for A356.2 Ingot, Sow & T-bar

Eccomelt is a division of House of Metals Co. Ltd., founded in 1953 and has achieved recognition as being one of Canada’s best-known aluminum processors.

Alongside Alcan R&D, we have developed an eco-friendly substitute for A356.2 from aluminum wheels. Our product is the material of choice for many consumers because it is chemically pure and environmentally-friendly. Its shredded form has achieved higher melting rates than Ingot, Sow or T-Bar. Environmental testing has also proven the process eliminates all coatings.

Our customer support specialists would be delighted to speak to you about your aluminum alloy needs. For more information about our products, please visit our about us page. Alternatively, please contact us at (888) 356-9557 for more information on our Eccomelt356.2

By | 2018-04-25T18:08:10+00:00 April 25th, 2018|Uncategorized|0 Comments