EU has discussed for months possible ban of Russian aluminium
Expected to propose another package of import bans source
Loss of Russian aluminium would leave Europe with shortfall
Aluminium prices spiked in wake of US sanctions on Rusal in 2018
Middle East accounted for about 9 of global supply in 2023 IAI

LONDON, March 4 Reuters European and U.S. buyers will compete aggressively for Middle Eastern aluminium if the European Union bans Russian metal in coming months, sparking price rises reminiscent of 2018 when sanctions were imposed on Rusal.

A race for aluminium from Middle Eastern countries, including the United Arab Emirates and Bahrain, will fuel inflation for Western companies in the transport, packaging and construction industries already facing high raw material and payroll costs.

Aluminium is a key ingredient for electric vehicles. Significantly lighter than steel, it is now the metal of choice in a wide range of parts for electric vehicles.

The EU has for months discussed sanctions that would ban Russian aluminium. No new sanctions on aluminium were included in its latest package to mark the second anniversary of Russia39;s invasion of Ukraine, but the bloc is expected to soon propose another package with new import bans, sources said.

Middle Eastern producers were responsible for 6.2 million metric tons or nearly 9 of global supplies last year, according to the International Aluminium Institute. Roughly two million of that was shipped to Europe and…