Aluminum price in Russia and Europe

From "rejection" to "proactive", European buyers "can't stop" their demands for Rusal. The price of aluminum is widely discussed in Russia and Europe. Three weeks after the "Beixi-1" supply of natural gas was interrupted, even Germany, one of the toughest countries, finally took the initiative to initiate a procurement application to this country that it "sanctioned" by itself. From "absolute refusal" to "active procurement", in addition to "can't stop" for Gazprom, which has been included in the sanctions list, European buyers are also indifferent to the attitude of Rusal, which has not been included in the sanctions list.

Some options no longer buy

Novelis, one of the world's largest aluminum buyers, announced that its European factories will no longer buy Russian metals next year; Norway's Hydro also officially announced that its divisions that provide aluminum products for the automotive and construction industries Aluminum produced in Russia will be excluded from purchases in 2023. Even in the "matching season" of the aluminum industry in September, the organizer of Barcelona, Spain, who organized the aluminum contract negotiation event in the following year, refused to authorize the Rusal team to participate in the event this time.

There are also some options to continue buying

An executive at Paris-based global aluminum supplier Constellium said it plans to continue purchasing from Rusal next year, with a share similar to 2022 levels because Rusal has not been sanctioned. However, he also said no final purchasing decision has been made. A trader admitted that in today's situation, buyers are trying to squeeze as much profit as possible, demanding discounts from Rusal.

Rusal itself is also working

Rusal's team became uninvited "guests" in Barcelona, offering discounts to buyers; (working) on a plan to deliver aluminium directly to LME warehouses in Asia - seeking Asian buyers . In fact, the "cheap" aluminium offered by Rusal is very attractive to European buyers - per tonne at a time when they are facing record high electricity prices, severely squeezed margins and the threat of a significant reduction in European aluminium production capacity. The discount is $100 to $150. Data show that from March to June this year, the EU imported an average of 78,207 tons of Rusal per month, an increase of 13% over the same period last year.