Rusal Redirects Aluminum Supplies from China to Japan and Other Asian Markets

Russian aluminum producer Rusal is planning to alter its aluminum supply routes by redirecting part of its production from China to Japan and other Asian markets. This decision has arisen from shifts in global trade flows caused by the war in Iran, which has resulted in a sharp increase in aluminum premiums.

This information was reported by Reuters, citing sources within the industry. According to Trade Data Monitor, the Middle East produced nearly 7 million tons of primary aluminum last year, accounting for 9% of global supplies. Japan, in turn, relied on this region for 27% of its imports, which amounted to 2.1 million tons. The largest share of imports came from the United Arab Emirates, where Japan received 400,000 tons, while 143,000 tons were imported from China and only 68,000 tons from Russia.

Recently, Japanese buyers agreed to premiums ranging from $350 to $353 per ton of aluminum for the period from April to June, marking the highest level in the past 11 years. Spot premiums have also surged sharply, creating potentially lucrative conditions for producers, as noted by Reuters.

However, sources indicate that the availability of Russian aluminum is set to increase, as imports of Russian metal to the key Chinese market, which averaged between 170,000 and 180,000 tons per month from October to February, are likely to decline in the coming months. This is due to the fact that Rusal's Chinese clients are unwilling to pay prices based on Japanese premiums when domestic aluminum can be purchased at a lower cost.

This move by Rusal serves as further evidence of how the war in Iran has impacted the physical aluminum market. The closure of the Strait of Hormuz and Iranian attacks on the two largest smelters in the Persian Gulf are forcing consumers to seek new sources of supply.

In 2025, Rusal produced 3.9 million tons of aluminum, and sales of primary aluminum and alloys rose to 4.5 million tons due to the release of stocks from previous years. Major export markets for Rusal in 2025 included China, South Korea, and Turkey, which accounted for $5.2 billion, $1.2 billion, and $802 million, respectively, out of the company's total revenue of $14.8 billion.

It is worth noting that Western consumers have largely avoided Rusal's products since Russia's invasion of Ukraine in 2022. As previously reported, in March, Russia began redirecting oil intended for China to India due to a sharp increase in demand from major Indian refineries. Consequently, prices for the key Russian oil grade Urals, supplied to India, reached record highs after the U.S. expanded its waiver for purchasing Russian raw materials.

In 2025, Rusal concluded its financial year with a loss of $455 million, compared to a profit of $803 million in the previous year. Rusal is the largest aluminum producer in Russia and the second-largest in the world, after China. The largest shareholding in the company is held by Russian oligarch Oleg Deripaska.