The opposite effect: American steelmakers was left without income and raw materials

© REUTERS / Tony GentileРабочие metallurgical company Alcoa carried out a protest rally in RomeThe opposite effect: American steelmakers was left without income and raw materials© REUTERS / Tony Gentile

MOSCOW, 2 Jun — RIA Novosti, Natalia Dembinski. April sanctions against «RUSAL» according to the plan of trump was to increase the incomes of American business, but the opposite happened. The increase of duties on imports led to a surge in prices of key component in aluminium production is alumina, which affected the financial statements of major market players. Net profit of aluminum giant Alcoa in the first half fell by a quarter, the negative trend and Century Aluminium. The Wall Street Journal warns that victims will be more.

Restrictions, sanctions and strikes

The problems started with the world’s largest alumina refinery Alunorte in Brazil. The plant, owned by Norwegian Norsk Hydro, with March only half power. Alunorte has cut production by almost 50 percent, after local authorities accused him of pollution of natural water sources. In March, environmentalists have identified a leak of liquid waste from storage boxinga deposits from which the company receives raw materials, and demanded to improve the environmental system. The company admitted that it is unknown how long it will take to eliminate the violation.

«Fees have had the opposite effect: higher premiums, «ate» distorted the market and the fantastic growth of costs,» he said.

Alumina has become the largest item of expenditure American aluminum producers, even blocked energy costs.

According to the forecasts of the new York Berenberg Capital Markets this year, the global market for alumina (excluding China, which are using the whole aluminum oxide that produces) will drop below 50 million tons — the lowest level in ten years. Analysts believe that the alumina is in danger of becoming the «most stringent» of all commodities, American companies will suffer huge losses.