Page Seven / La Paz
Due to the Russian invasion of Ukraine, aluminum prices skyrocketed and industrialists in Boliva warn that this will raise the costs of packaged food, soft drink and other companies, since this input is not produced in Bolivia, but is imported.
Although yesterday there was a decline, last week the price of this metal on the London Metal Exchane reached 4,073.5 dollars. Russia is one of the main exporters, reported AFP.
The president of the National Chamber of Industries (CNI), Ibo Blazicevic, reported that Bolivia imports aluminum sheets, such as cans of different sizes, depending on the needs of each industry.
He explained that this input is used to package soft drinks, soft drinks, beer, different canned foods, juices, fruits and all kinds of preserves.
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“We depend on the import of manufactured sheets and cans and the price that is at maximum levels affects costs and will make the production process more expensive, it will have its impact and there is no doubt about that,” he pointed out.
In addition, according to Blazicevic, the high price of aluminum will have a direct impact on capital goods, equipment, machinery and automobiles, which will become more expensive.
On the other hand, he said that due to the war between Russia and Ukraine, problems are expected in the entire logistics supply chain, delays in shipments of raw materials, intermediate goods and it is feared that this will cause a collapse.
The president of the CNI pointed out that another product that has increased in price is copper, a metal that has various uses in the electrical industry.
“Copper is produced in the country but not at an industrial level and anodes and copper cathodes are imported for the electrical industry, construction and these components can become more expensive,” warned Blazicevic.
Bolivia imports raw aluminum from China, Hong Kong, the United States and Brazil. In 2020, purchases reached 359,439 dollars and last year to 131,191 dollars and this year to 7,457 dollars, according to official data prepared by the Bolivian Institute of Foreign Trade (IBCE).
Aluminum flakes were also imported from Sweden for $26,486 in 2019 and this year for $61,381.
For the president of the CNI, in general, the rise in prices of these products or wheat and flour is that it can generate an inflationary process.
Another industrialist from La Paz warned that the war conflict generates a series of problems, including imported inflation and an increase in the cost of goods and containers, which is estimated to rise from 15,000 to 30,000 dollars.
According to BBC World, Russia is one of the world’s largest suppliers of metals that are used in all kinds of products, from aluminum cans to copper cables and car components. It is the fourth largest global exporter of aluminum and is one of the world’s top five producers of steel, nickel, palladium and copper.
