https://www.miningweekly.com
Aluminium|Business|Construction|Copper|Packaging|Paper|System|transport|Packaging|Products
Aluminium|Business|Construction|Copper|Packaging|Paper|System|transport|Packaging|Products
aluminium|business|construction|copper|packaging-company|paper|system|transport|packaging|products

Glencore to stick with Rusal's aluminium in 2023 -sources

27th October 2022

By: Reuters

  

Font size: - +

LONDON - Commodity trader Glencore will buy aluminium from Rusal next year according to its contract with the Russian producer, and so far only about 10% of its current customer base is looking elsewhere, two people with direct knowledge of the matter said.

Calls to ban Rusal's aluminium from the London Metal Exchange's (LME) system by U.S.-based aluminium producer Alcoa and Norway's Norsk Hydro had led the market to expect many would shun Rusal's metal next year after 2022 contracts expired.

Some in the market were speculating that Glencore would also shun Rusal despite the company's close association with it.

But European business groups representing consumers oppose any restrictions against Russian aluminium, saying they could put thousands of companies out of business and that those calling for measures "are either its main competitors" or have supply options that are not available to others.

Rusal's aluminium and products are used by the transport, construction and packaging industries.

Rusal has already sold 76% of its primary aluminium and value added products for next year, the sources said. They said that the world's largest producer outside China, which accounts for 6% of global output, would produce 4.2 million tonnes of primary aluminium next year.

"Glencore are going to take aluminium from Rusal next year," one of the sources said, declining to detail the quantity and adding that negotiations with consumers to sell the remainder of Rusal's product were still going on.

Glencore and Rusal declined to comment.

Rusal in April 2020 agreed a long-term contract to supply London-listed Glencore with 6.9-million tonnes of aluminium. Of that, 344 760 t were due to be delivered in 2020 and around 1.6-million tonnes a year between 2021 and 2024.

Glencore has a 10.5% stake in EN+, which has a majority stake in Rusal.

Aluminium consumers and producers have been negotiating contracts for 2023 since September.

"Talks have taken longer than usual because there is so much uncertainty about aluminium demand next year," an aluminium buyer said, adding that the possibility of the LME banning Russian metal was also creating uncertainty.

Earlier this month, the LME launched a discussion paper on the possibility of banning Russian aluminium, nickel and copper from being traded and stored in its system. The deadline for responses is Friday.

U.S. President Joe Biden's administration is also weighing restricting imports of Russian aluminum as it charts possible responses to Moscow's military escalation in Ukraine, a person briefed on the conversations told Reuters.

Edited by Reuters

Comments

Latest News

Resources Watch
Resources Watch
27th March 2024

Showroom

SABAT
SABAT

From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...

VISIT SHOWROOM 
SBS Tanks
SBS Tanks

SBS® Tanks is a leading provider of innovative water security solutions with offices in Southern Africa, East and West Africa, the USA and an...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.116 0.153s - 114pq - 2rq
Subscribe Now