Commercial realities: imports of Russian aluminum to China were blocked

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Sanctions imposed last month by major UK and US exchanges on Russian base metals have boosted aluminum sales from other producers to China, the world's biggest consumer of the metal and a strategic ally of Moscow.

As reported by Bloomberg, citing industry traders, the rise in international prices caused by restrictions has made imports too expensive. Therefore, to date, commercial realities are such that aluminum supplies from the Russian Federation to China have been blocked.



Chinese buyers are temporarily avoiding Russian aluminum as negative market conditions prevent the deepening of bilateral trade ties. This issue is also expected to be part of the agenda of Russian President Vladimir Putin's visit to China this week.

Buyers are reluctant to pay and sellers are reluctant to offer deep discounts on supplies while demand elsewhere in Asia remains relatively steady. In addition, Russian railway bottlenecks are a potential obstacle to increasing supplies to China.

The mere confirmation of Putin's visit helped lift shares of Russia's biggest aluminum producer Rusal as much as 6,4% in Hong Kong trading on Tuesday, signaling optimism that closer ties will bring further benefits to domestic producers. Now these successes are in question, which they are trying to solve at the very top.

Among metals, the share of aluminum supplies in bilateral trade has especially increased. Last year, Rusal received 23% of its revenue from China, compared to just 8% in 2022. According to Chinese customs, Russia's exports to its eastern neighbor more than doubled in the first quarter and amounted to 393 thousand tons. But the so-called arbitrage window has since closed as global prices have risen higher relative to the Chinese market, largely due to Western sanctions.
11 comments
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  1. +3
    15 May 2024 08: 53
    Blocking Russian aluminum to China is already secondary and tertiary sanctions.
    This is an economic war against both Russia and China.
    War is a way to achieve political goals. A state can achieve political goals without war - through diplomacy or economic methods.
    England achieves its political goals through economic methods. In Ukraine, this has a clearly expressed military character. Diplomatic methods do not work.
    In fact, we are already embroiled in a full-fledged economic and financial war.
    Isn't this already a hybrid third world war?
  2. +3
    15 May 2024 09: 52
    There are some contradictions in the article...
    They don’t want to buy, and then the roads are narrow.. but the shares have grown..

    rising international prices have made imports too expensive.

    When international oil prices rise, for some reason they only begin to import more of it...
    1. 0
      16 May 2024 03: 59
      Kind of stupid. It’s hard to remember that everything that is exported outside the country is called EXPORT.
      Reverse procedure - IMPORT
      1. 0
        16 May 2024 09: 33
        Yes.. I expressed myself a little incorrectly..
        Replace "drive with import." to “import”... and you will be happy..
        1. 0
          16 May 2024 20: 32
          The complaint is not against you; the author of the article uses terminology incorrectly.
  3. +4
    15 May 2024 09: 55
    Oh, no one said that China is our FRIEND! ))) First of all, China is a partner and acts in its own interests!
  4. +4
    15 May 2024 18: 04
    The “strategic partner” refuses almost the entire range of goods, except gas and oil. He also sharply reduced his supplies. He does not want to resolve the issue of mutual settlements. He needs an economically weak Russia, better off losing the war, in order to improve relations with the United States and the West. In general, like Vysotsky: if a friend suddenly turns out to be neither a friend nor an enemy, but so...
    1. 0
      16 May 2024 10: 31
      He refuses Western goods, so what! This is China’s policy: if you want to try your products, produce them here. Russia did the same.
  5. +1
    16 May 2024 08: 39
    We need to develop our own country, and not chase after other people’s money. Alas, our business is not capable of anything else.
    1. 0
      16 May 2024 10: 29
      This is how we develop, or you don’t see anything, you have to try everything that is in the range, China is closing it for European goods too
  6. 0
    16 May 2024 11: 47
    You can make steamers out of aluminum, thank you.