Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Rusal is negotiating alternate routes to supply its Siberian Achinsk alumina plant with raw materials after damaged rail infrastructure obstructed its resource flow. 


The Russian aluminium producer, which is among the largest manufacturers in the world outside of China, supplies the Krasnoyarsk aluminium smelter. It’s currently in discussions with Russian Railways to arrange another expeditious way to deliver supplies to the plant. On Wednesday, the supply of raw materials to its Achinsk facility was at a standstill and material inventory was dangerously low, according to reports. 


A segment of the railway used by the plant was damaged during heavy storms on June 7, after the area received about half of a month’s rainfall in one day. The state-owned railway noted the amount of material in the plant’s stockpiles may sustain the company for five to seven days, media reports stated.


Rusal produced 3.8mn mt of aluminium in 2019, accounting for 5.9pc of global production. The company has already been negatively impacted by decreased aluminum demand the last few months, which was catalyzed by the pandemic. However, this week’s events have exacerbated the company’s challenges as aluminium smelters need firm, reliable material supply to avoid the pitfalls that result from sporadic production.


Produced from alumina, aluminium requires bauxite and other raw materials, which can result in a lengthy and intricate supply chain for the aluminium industry. 


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