Alcoa, the largest US aluminum producer, warned investors Wednesday that any conflict between Russia and Ukraine could have an impact on the global market for the metal.
CEO Roy Harvey said any kind of aggression could have an impact to supply coming out of Russia, the world’s second-largest aluminum producer. It could also cause a rise in energy prices, which would have a knock-on effect to the aluminum industry given the high energy consumption needed to make the metal. Responding to a question about what risks the industry would face if a conflict arose, Harvey said it could disrupt demand as well.
“That can very quickly impact the supply,” Harvey said in a call with analysts.
President Joe Biden said Wednesday at a news conference that he thinks Russian President Vladimir Putin will “move in” on Ukraine after amassing more than 100,000 troops on the nation’s border, though he indicated a full invasion may not be in the plans. Russia accounted for about 3.6-million metric tons of aluminum production in 2020, tying it with India as the second-largest producer in the world, according to the US Geological Survey.