ON THE SPOT
Fog of trade war is just one of the issues making it hard for Hulamin to plan
Business Day asks CEO Richard Jacob what effect the tectonic trade wars are having
First import tariff hikes against China, now sanctions against Russia: Donald Trump’s US has caused huge ructions in the world’s steel and aluminium markets. Business Day caught up with local aluminium product producer Hulamin and asked CEO Richard Jacob what effect these tectonic trade wars are having. We’re like the milling company that mills the grain: the price of the grain, which is the LME (London Metals Exchange) aluminium price, doesn’t really affect us. Customers pay the aluminium price and we charge them a fee to convert raw aluminium that comes from a smelter such as South32 or Rusal. That’s our selling price. So, to some extent, it doesn’t actually matter what the aluminium price is? If the LME moves up or down, that price gets passed on. Hulamin’s shares have risen considerably in the wake of the Russian sanctions. But has the market misunderstood how sanctions may affect you? There’s a lot going on in the aluminium space right now, particularly in the US. Think of the ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.