Russia’s aluminium wire export continues declining in 2018, both in terms of volume and revenue

Growing consumer demand towards lightweight automobile vehicles has been incessantly stimulating the aluminium wire market demand over the years. So to say, aluminium wire market size is set to surpass US$ 65 billion by 2024, according to a new research report by Global Market Insights Inc.

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Aluminium wires are utilized in various home electrical appliances, switches, circuit breakers and motors owing to their light weight, corrosion resistance and retention of temperature even at low temperatures properties. They also reduce corona an electric discharge which is associated with high power transmission; and their excessive heating does not separate the electrical fixtures and connections, thus increasing the industry demand."

Russia has been exporting a notable amount of aluminium wires for the past three years, although the volume sees a year-on-year fall. According to the global export-import data, the country’s estimated aluminium wire export in 2016 was at 163,279 tonnes, which in the subsequent year 2017 dropped 5 per cent to 155,389 tonnes. The data also shows that the estimated amount in 2018 is likely to stand further down at 115,914 tonnes, 29 per cent lesser than in 2016 and 25 per cent lesser than that of 2017.

Russia’s revenue from aluminium wire export in 2016 was at US$249 million, which in 2017 grew 9 per cent to US$272 million. In the year 2018, the revenue, however, may hover around US$225 million, 10 per cent down from 2016 and 17 per cent down from 2017.

The US sanctions against Rusal, the leading aluminium producer in Russia, from April 2018, could be one of the reasons for the export amount to stand down in the said year. However, according to the latest report, the United States has declared to remove sanctions from Rusal under certain conditions. Now, it is to see how the country’s aluminium wire export fares in 2019 after the sanction is lifted from Rusal.