Glencore extends aluminum contract with Rusal
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Update time : 2024-05-28 16:49:28
Glencore Plc is extending its contract with Russian aluminum giant United Co. Rusal International PJSC through 2025 and early 2026 despite a significant reduction in sales volumes. Initially agreed in 2020 for over 1 million tons of aluminum annually, the deal now sees Rusal shipping only a fraction of that amount since mid-2023.
Glencore continues with the volume-based contract even after recent sanctions barred new deliveries of Russian aluminum to the London Metal Exchange and Chicago Mercantile Exchange. The extension covers some undelivered volumes from Rusal. Both companies declined to comment on the matter.
This extension highlights the shift in international metals trading since Russia's invasion of Ukraine, with Rusal increasingly focusing on the Chinese market. Despite no direct US or EU sanctions on Rusal or MMC Norilsk Nickel PJSC, wider restrictions have impacted operations, pushing these companies towards China, which has become their largest market.
