www.zerohedge.com BY TYLER DURDEN
Fragile supply chains are crumbling worldwide after Russia invaded Ukraine. The latest disruption comes from Australia, as the world’s top alumina exporter has shunned shipments to Russia, sending aluminum spot prices higher.
Bloomberg reports Australia’s top alumina refineries choked off flows of alumina to Russia’s United Co. Rusal International PJSC, the world’s second-largest aluminum company by production output. Rusal has a 20% stake in Rio Tinto Group’s Queensland Alumina Ltd refinery. Rio is working out options regarding its partnership with Rusal.
Australia accounts for 20% of Russia’s alumina supply, also called aluminum oxide, which is derived from bauxite ore and sent to refiners and turned into alumina. Bulk carriers then ship the alumina to smelters in Russia, where it’s then transformed into aluminum.
