Russia increases metal exports to South Korea
Russia continues to increase aluminum exports to Asian countries, replacing part of the metal volumes that went to the United States and Europe. Thus, according to the results of the first half of 2024, the Russian Federation increased aluminum supplies to South Korea by about 20% year-on-year, to 154.9 thousand tons, strengthening its position in the top three largest suppliers of metal to the country. Demand for aluminum in South Korea stimulates activity in the manufacturing industry.
According to the results of the first half of 2024, Russia increased aluminum exports to South Korea by about 20% year-on-year, to 154.9 thousand tons, RIA Novosti reports, citing data from the Korean statistical service. The cost of supplies increased by 1.2 times, to $372 million.
According to the agency, the half-year volumes of Russian aluminum exports to the country in physical and monetary terms became the highest since 2012. As a result, Russia became the second largest supplier of aluminum to South Korea with a share of 19.2% of all supplies, ahead of India with a share of 15.5% and behind Australia, which took 28.8%. In the first half of 2023, the Russian Federation ranked third in aluminum supplies to the country.
The growth in aluminum supplies to South Korea corresponds to the trend of a general increase in aluminum product exports to Asian countries.
Thus, according to Chinese customs, in the first five months, the Russian Federation supplied China with unprocessed aluminum worth $1.5 billion, which is more than half of the total volume of supplies for 2023.
As Kommersant’s source in the market notes, the increase in aluminum exports to Asian countries makes it possible to replace part of the metal volumes that went to the United States and Europe. In March 2023, the United States introduced protective duties on Russian aluminum, and in April 2024, together with Great Britain, they banned the import of aluminum, copper, and nickel from the Russian Federation. Trading of metals of Russian origin on the London Metal Exchange (LME) and the Chicago Mercantile Exchange (CME) is also prohibited. The EU, the Kommersant source adds, although it does not block access to Russian metal, regularly initiates discussions about abandoning it.
Rusal exports most of its aluminum. In 2023, with the company’s total revenue under contracts with customers amounting to $12.2 billion, Russian customers accounted for $3.4 billion, the report says. The Aluminum Association of Russia reported in December 2023 that less than a quarter of the metal could be sold on the domestic market of the Russian Federation.
South Korea was Rusal’s second-largest foreign market in terms of revenue after China in 2023, according to the company’s report. Rusal’s revenue from South Korea increased by 0.6% year-on-year to $1.19 billion. Revenue from China increased 2.5 times to $2.8 billion, while revenue from Europe and the American region fell by 40% to $3.5 billion. Kommersant’s source in the market expects further growth in aluminum exports from Russia to China, given the country’s friendly attitude and the size of the market.
As noted by the AlCircle portal, in 2023, the demand for aluminum in South Korea per capita became the highest in the world due to the needs of automotive and electrical engineering enterprises. And the activity of the country’s factories continues to grow. The S&P Global manufacturing PMI index in South Korea rose to 52 points in June against 51.6 points in May. Sales at factories grew at the fastest pace since February 2022, according to the S&P Global review.