In May, aluminum exports from Russia totaled 420,000 tons, according to the Federal Customs Service (FCS). This is by 59,1% more than in April. In monetary terms, exports increased by 56.6% to $ 751.6 million. As compared to March 2018, shipments increased by 24.8% in physical terms and by 17.3% in monetary terms. The department in its statistics takes into account the export of raw aluminum.
The only aluminum producer in Russia is UC Rusal Oleg Deripaska. On April 6, the US Ministry of Finance imposed sanctions against it. After that many foreign companies began to refuse cooperation with UC Rusal.
According to the Federal Customs Service, in April, exports of UC Rusal declined by almost two times, both in physical terms and in value terms, to 172,000 tons and $ 325.9 million, respectively. How much aluminum production has changed at UC Rusal enterprises is not known. The company itself has not published such statistics yet. Sources Vedomosti said in April that in a situation of a sharp reduction in foreign demand, UC Rusal has decided not yet to reduce production, and work in the warehouse.
On April 23, the US Treasury determined the deadline for the termination of contracts with UC Rusal until October 23. This reduced panic and speculative sentiment in the market and gave consumers the opportunity to carefully set up a supply chain, ACRA analyst Maxim Khudalov said: "Consumers understand that after October 23, access to metal can be limited. As long as there is a possibility, they fill their warehouses. "
Sales of aluminum UC Rusal in 2017 amounted to 3.9 million tons, of which more than 80% is exported. Domestic consumption of aluminum does not exceed 800,000 tons. In 2018, UC Rusal may increase the sale of metal in the domestic market by 300,000 tons, Russian Industry and Trade Minister Denis Manturov said on Monday. In his opinion, in five years the company will be able to ensure consumption in Russia of 2.5 million tons, which "will help less to depend on exports." Due to what in Russia the consumption of aluminum will grow, Manturov did not specify. The minister's forecast is optimistic, Khudalov said. Russia imports 260,000 tons of aluminum products of simple redistribution, the capacity for its production is under-loaded, but it will be difficult to displace imported products. In addition, the business of UC Rusal was focused on the export of raw materials and it is not possible to quickly adapt to the production of redistribution for the domestic market, the expert notes. He predicts an increase in domestic consumption of metal by 50,000-80,000 tons per year due to the demand for aluminum in construction and production of wiring.