Russia steps up alumina imports from India to plug Chinese supply shortfall

Russia has taken a strategic step in recent months by ramping up its alumina imports from India to support its Siberian plants, reducing dependency on China and diversifying its sources of primary aluminum feedstock. This move has also contributed to cost savings in production.

After Russia's invasion of Ukraine and Australia's ban on alumina exports to Russia, the country's top aluminium producer, Rusal faced a shortage of alumina supply. This forced Rusal to rely heavily on alumina imports from China, which had its own constraints due to increased production. To address this issue, Rusal diversified its alumina sources by securing supplies from India and Kazakhstan, expecting a decrease in alumina costs for 2023 compared to 2022.

Russian customs data showed that Russia emerged as the second-largest buyer of Indian alumina in the first half of the year, with India exporting 189,379 t to Russia. India's state-run National Aluminium Co. (NALCO) emerged as the primary supplier of alumina to Russia, with an estimated purchase of over 350,000 t in 2023.

While China remained a significant supplier of alumina to Russia, its supply diminished due to increased domestic aluminium production. Furthermore, Aluminium of Kazakhstan planned to reduce its alumina supplies to Russia in 2023 to meet its own demand.

Despite efforts to diversify its alumina sources, Rusal still recognised its significant dependence on imported alumina. To mitigate this risk, the company has proposed a project to build an alumina plant in a Russian Baltic Sea port, with the first phase expected to be operational by the end of 2028.