More isolation of Russia

[dan_s]

This is bad of Russia and the rest of the world that needs these commodities.

MSC, Maersk, and CMA CGM, which are the world’s three largest container shipping companies, have all stopped booking shipments to and from Russia. These cancellations are in response to Western sanctions against Russian banks, according to Reuters. Maersk handles “some” aluminum shipments for Rusal, also according to Reuters. Maersk’s most recent annual report does not detail Russian shipping volumes. Rusal is the largest aluminum producer outside of China, with 3.76 million mt of production in 2020 or about 5.7% of world production, according to S&P Global and USGS data.

Also, several unnamed shippers have refused shipments from Russian nickel miner Norilsk Nickel, according to Bloomberg. Norilsk Nickel is the world’s largest nickel miner, producing approximately 235,000 mt in 2020, or about 9.4% of global production according to S&P Global and USGS data.

These shipment cancellations could further strain metals supplies from Russia and might drive prices higher. Consumers who are concerned about input costs might consider purchasing swaps or call options.