The Russian aluminum shipment abroad experienced a tenfold surge in July, says the data recorded by the Federal Customs Service. Compared to the year 2020 for the same period, the July exports amounted to $7.4 billion, meaning that the July exports surpassed three million tonnes.
Previously this year, the Russian authorities had imposed a 15 percent tax or a minimum of $254 per tonne for the aluminum exports between August and December. The tariffs also target the foreign sales of ferrous and non-ferrous products like copper, nickel, aluminum, metals and metal products.
Compared to the major metal and mining commodities, the global aluminum prices have reportedly increased by 40 percent since the beginning of the year. The increase in the price is due to the structural changes in the Chinese aluminum market which came during the decarbonisation initiatives carried out by Beijing.
Due to the constant increase in prices, the Chinese market has created global deficit for aluminum.
Due to the political rift in Guinea the aluminum prices have increased rapidly, leading to serious concerns over the supply of Bauxite, the raw material required to produce aluminum.
According to Oleg Deripaska the founder of Rusal, “The market can be seriously shaken by the current situation.” With around 65 million tonnes in 2020, Rusal one of the leading aluminum company in Russia accounts for 6 percent of global supplies of the metal.
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