Last year, China's purchases of Russian aluminum almost doubled. For Russia, China has become a major exporter of this light metal trade.
The import of raw aluminum from Russia increased by 94%. According to Chinese customs data, during the past 12 months, from March 2022 to February 2023, imports increased to approximately 538600 metric tons. This is the record annual quantity for the period.
Russia's export of such a large amount of aluminum to China is due to the fact that many Western Russian metal receiving countries have abandoned their purchases and adopted relevant sanctions against Russia.
The United States announced that it would impose a 200% tariff on aluminum and its derivatives produced in Russia from March 10th. Subsequently, Canada banned all Russian imports of aluminum and steel products.
Glencore, based in Switzerland, said last week that it would not renew its agreement to purchase $16 billion in aluminum from Rusal after it expires next year.
From a Russian perspective, China has become a natural recipient of aluminum, especially because this country is by no means the world's largest metal consumer.
Another thing is the quantity of Russian deliveries. Some experts believe that the price of aluminum shipped to China is far lower than the contract price signed with Western recipients. In order to maintain financial liquidity, they must agree to the interest rates proposed by China. Beijing has made a lot of money from Russian aluminum. Until recently, more than half of aluminum passed through the Chinese market, and now it can reach as high as 60%.
