Shipments of Russian aluminum abroad saw a tenfold surge in July compared to the same period a year ago, amounting to $7.4 billion, according to data tracked by the Federal Customs Service.
In physical terms, the July exports reportedly exceeded three million tons.
Earlier this year, the Russian authorities imposed a 15% tax, or a minimum of $254 per ton, on aluminum exports between August and December. The tariffs also target foreign sales of ferrous and non-ferrous (copper, nickel, aluminum) metals and metal products.
Global aluminum prices have reportedly surged nearly 40% since the beginning of the year, more than major metals and mining commodities. The price spike is attributed to structural changes in the Chinese aluminum market that come amid decarbonization initiatives pushed forward by Beijing.
By becoming a net importer of aluminum, China has created global deficits for the metal, keeping prices consistently high.
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Earlier this week, aluminum prices hit a decade high as political unrest in Guinea fueled deep concerns over supply of bauxite, the raw material used for the production of the metal.
The market “can be seriously shaken” by the current situation, according to Oleg Deripaska, founder of Rusal, Russia’s only aluminum major, which accounts for 6% of global supplies estimated at 65 million tons last year.
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