Fear of French industry for its important supply

French industry is preparing to suffer very much from the sanctions that, more specifically, isolate Russia as a result of the Ukrainian crisis. It has to face a deficiency of many minerals, some of which are important to the tricolor industry. This puts certain sectors at risk, such as the production of aluminum, which relies heavily on the import of alumina from Russia. “France relies heavily on its only supplier, Rusal.”Note the French industry in a memo assessing the risks of the French industry. Therefore, the manufacturer’s inventory is only 3 months.

Aluminum producers say, “Production cannot be interrupted without serious consequences.EstimateProfessional organization representing French industry.. In addition, aluminum prices are global, and new rises in energy prices cannot be passed downstream, causing major profitability problems and potentially leading to permanent shutdowns of aluminum production plants...

If gas imports from Russia are moderate (17%), or less than 6% of energy imports, soaring gas prices in Europe will be “Major impact” Gas-intensive industries (chemicals, fertilizers, glass, etc.) and “Impact of rebound on electricity prices in Europe”Estimating the French industry.. This will have a significant impact on the world’s semiconductor industry, including electricity-intensive industries (chemicals, aluminum, steel, cement, paper mills, sugar mills, starch mills, etc.).Ukraine supplies more than 70% of neon, so it is an essential component of lasers Used in chip manufacturing and consumed worldwide, more than 90% of the neon produced for the US semiconductor industry comes from Ukraine.

Titanium, palladium, platinum, ruthenium, iridium, rhodium ..

Due to its reliance on Russian titanium, European aviation and shipbuilding are at significant risk. Russia supplies about 40% of the ferrotitanium used in Europe. In particular, we are a leading supplier of titanium for the global aviation industry, regardless of aircraft manufacturer, engine manufacturer or equipment manufacturer.

Imports of strategic metals such as palladium, platinum, ruthenium, iridium and rhodium also pose a risk to French industry. Therefore, 34% of the supply (catalytic converter) of the automobile industry comes from Russia. The dependence on Russia is 17% for platinum and 15% for ruthenium, iridium and rhodium. Metals used in the manufacture of automotive catalysts, electronic devices, jewelery, and fuel cells and hydrogen electrolytic cells. Manufacturers such as Symbio / Michelin, Hyvia, Stellantis, PowiDian, EODev, Alstöm / Helion, and HDF on fuel cells can be affected by these metal deficiencies. South Africa, a major producer of PGM, which accounts for about 80% of the market, can meet the needs of the tricolor industry.

French manufacturers can also be affected by lower imports of nickel, copper and cobalt. Russia will be the world’s third largest producer of nickel, with 250,000 tons of nickel produced in 2021 out of the world’s production of approximately 2.5 million tons. French manufacturers can ask Eramet to increase its rate to meet their needs. Manufacturers such as McPhy and John Cockerill of Belgium are located in French alkaline electrolyzers. Nickel also plays an important role in stainless steel batteries. This also applies to the supply of copper required for electrolytic cells and fuel cells and cobalt required for catalysts in alkaline electrolytic cells. Russia will be the world’s seventh largest producer of 850,000 tons of copper (out of about 20 million tons) in 2020, and the second largest producer of 6,100 tons (out of about 140,000 tons) of cobalt in 2019. Is the country of origin.

Finally, imports of synthetic rubber and carbon black from key supply areas Russia and Ukraine can affect tire manufacturers.

What is the impact on exports?

Russia is squeezing France’s exports. In particular, transportation equipment (automobiles, railroads, aviation), chemical products, perfumes, and cosmetics are overwhelmingly large, accounting for 24.3% and 21.4% of total exports, respectively. Wine (champagne), spirits, farm equipment and seeds are also widely exported. In addition, French industrial groups established in Russia can also be affected by the Ukrainian crisis: Michelin, Bell, Renault (Dassia and Lada), Bonduel, Danone, Saint-Gobain, Sanofi, EDF, Schneider Electric, Orange, TotalEnergies (almost 20% of gas and oil production), Sanofi, Pernod Ricard, and Carrefour and Ochan.Renault has the largest exposure, Russia has Second market Volume after France.MeThe Alliance holds a market share of approximately 35% in Russia in 2021.

In Ukraine, certain French industrial sectors, especially the food industry (Bell, Lactalis, Bonglein), automobiles (Renault and Peugeot have a 25% market share), and Sanofi, Schneider Electric, Air Liquide, SNEF are exposed. doing. (Electrical engineering, climate engineering, nuclear power, construction, telecommunications).Ukraine, for example “Important country of Sanofi clinical trials”Observe the French industry.