Rusal looks to boost aluminium sales in Brazil

United Co Rusal plans to step up sales of aluminium to the South American market, sources told Metal Bulletin.

Its move reflects efforts by the Russian company to move on from sales into Brazil’s spot market to deals signed on annual contracts.

“There should be an increase [in Brazil’s aluminium imports], as the company [Rusal] is penetrating this market. Some trials in the spot market have been done so far, but the idea is to start trading large volumes,” a source close to the company told Metal Bulletin.

“South America is to become a very important market for Rusal in the next few years, as the company plans to set annual contracts,” the source said.

Brazil’s aluminium imports rose by 61.2% year-on-year in October, mainly as a result of the year’s first shipments from Russia.

Brazil imported 12,060 tonnes of aluminium in the month, compared with 7,477 tonnes in October 2012, according to figures from the country’s trade minister.

Russia was the main supplier of aluminium to Brazil, shipping 5,999 tonnes in the month, followed by Argentina, with 5,859 tonnes.

However, Brazil’s bureaucracy and the heavy tax duties it imposes are still complicating sales into the country. For this reason, contracts are being agreed on a cif basis, the source said.

Brazil’s total aluminium demand for 2013 is estimated at 1.4 million tonnes, or 100,000-200,000 tonnes above the country’s domestic output, which is forecast to reach 1.2-1.3 million tonnes.

Rusal’s primary aluminium production capacity is currently 4.5 million tpy.