Russian oligarch Deripaska struggles to sell aluminum abroad
Aluminum from Rusal, owned by Russian oligarch Oleg Deripaska, was sent to the warehouses of the London Metal Exchange in Korea (Photo:REUTERS/Evgenia Novozhenina)
Significant quantities of aluminum, produced by Rusal – owned by Russian oligarch Oleg Deripaska – were put in London Metal Exchange (LME) warehouses in South Korea, Reuters reported on Oct. 18.
According to the report, these deliveries to LME warehouses highlight the difficulties Rusal faces as 2022 contracts expire and buyers avoid making further purchases of Russian metal.
Some clients don’t want to Rusal's aluminum in their production cycles. Unwanted metal ends up in the LME system – the market of last resort for consumers and manufacturers.
It’s unclear exactly how much aluminum the company ended up delivering to LME warehouses.
Aluminum prices rose by more than 7% on Oct. 12, amid news that the United States is considering restricting Russian aluminum imports as a possible response to Russia's escalating war against Ukraine.
Rusal is the world's largest aluminum producer outside of China, accounting for 6% of global shipments, estimated at about 70 million tons in 2022.
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