Chinese Aluminum Makers Activate Amid Rusal Supply Concerns

In August, China increased its aluminum shipments to global markets as buyers sought out the largest producer to replace the metal, United Co. Rusal, who was hit by US sanctions.

Exports of unprocessed aluminum and products reached 517,000 tonnes, almost the same as 520,000 tonnes in July, the highest in three years, according to customs data on Saturday. Shipments exceeded 1.5 million tonnes in June through August, a three-month record, and rose 15% in the first eight months of the year.

Aluminum prices rose in April after the US announced sanctions on Rusal, a leading supplier outside of China, due to growing global supply chains already under pressure from lower productivity at Alunorte in Brazil. Billionaire Oleg Deripaska is in talks with US authorities on a plan to lift the sanctions before the October deadline, but buyers will compete for supplies at the same time if differences are not resolved.

Chinese aluminum rushed to world markets on fears of supplies from Rusal.
China has also increased its exports of alumina, used to make aluminum, and supplies are likely to continue to expand due to supply disruptions.