Russia’s UC Rusal may reduce aluminum shipments after the country’s latest export duties come into effect in August 2021.

 

The aluminum producer’s Roman Andryushin, sales head, domestic and China regions, noted to media on Jul 22 that the tax move was likely to affect the company’s sales profitability. Rusal’s current exports stand at about 3mn mt annually, but that number will decline in the coming months, Andryushin projected.

 

He added that the new duties may not curb rising prices in domestic Russia, thus undervaluing Rusal’s investment plans to modernize its smelters. He also mentioned that the company is likely to consider suspending unproductive divisions and postponing its Taishet project’s ramp-up. In a bid to boost domestic markets, Rusal has forecasted a 20pc sales rise to 1.2mn mt in 2021 and 2mn mt in the next decade.

 

Russia’s temporary export tax rate of 15pc on aluminum, steel, and nickel will take effect from Aug 1 this year. This ruling is deemed as an attempt to cool an otherwise expensive and volatile commodities market and improve state cash inflows.

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