Russian aluminium company United Co Rusal International is considering selling aluminium directly to London Metal Exchange (LME) warehouses in Asia, reported Bloomberg News.

The move comes as the firm faces difficulty in finding commodity buyers.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Even though Rusal was not sanctioned in the wake of Russia’s invasion of Ukraine, some notable clients in the US and Europe have refrained from purchasing its metal amid the conflict.

At the same time, domestic demand for metal in Russia has dropped, driven by a recession in the country.

As a result, Rusal plans to sell its surplus production to LME.

However, concerns are being raised as large deliveries of the metal to the exchange could result in LME prices ‘diverging from the global aluminium market’.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

According to parties familiar with the development, Rusal has held talks for the supply of some aluminium to LME warehouses in Asia from Russia’s far-eastern port of Vladivostok.

The company is considering a pilot test by delivering a small portion of its aluminium production, the parties stated.

LME said it would carry out a constant review of the situation to maintain an orderly market.

Furthermore, the exchange said there is no evidence of LME warehouses being used to ‘offload metal on a long-term basis’.

Earlier this year, RBC TV reported that Russian miner Nornickel is considering a merger with Rusal, which would create a global base metals giant with a combined value of around $60bn and combined revenues of $30bn.

Nornickel is backed by Russian business oligarch Vladimir Potanin.