China Increases Intake of Russian Metals

(MENAFN) China has sharply increased its intake of Russian metals, reinforcing economic ties with Moscow as Russia reorients trade toward Asia in response to mounting Western sanctions, media reported Monday, citing customs data.

In an ongoing effort to undercut Russia’s revenue streams amid the war in Ukraine, the United States and its allies have expanded restrictions on Russian base metals. Against this backdrop, China has emerged as a crucial buyer of Russian commodities. Total bilateral trade between the two nations soared to a record high last year, surpassing $240 billion.

From January to May, Chinese imports of Russian aluminum surged nearly 56% year-over-year to approach one million tons. Copper purchases rose by 66%, while nickel imports more than doubled, according to figures from Trade Data Monitor referenced by media.

Although leading Russian metal producers like Rusal and Norilsk Nickel have not been directly sanctioned by the West, their access to key global exchanges has been severely curtailed.

In April 2024, Washington and London prohibited the London Metal Exchange (LME) and the Chicago Mercantile Exchange (CME) from accepting any new deliveries of aluminum, copper, or nickel originating from Russia. The US also introduced 200% tariffs on aluminum imports from Russia earlier, and Canada imposed a complete ban on Russian aluminum and steel.

Earlier in 2024, the European Union implemented a phased embargo on Russian aluminum, instituting a quota of 275,000 tons that will remain in effect until February 2026.

The Kremlin has strongly denounced the sanctions, calling them “illegal” and cautioning that they would ultimately harm the countries enforcing them. The restrictions have contributed to a sharp rise in global metal prices, with aluminum experiencing one of its steepest price increases in decades on the LME. In response, Russia has shifted exports toward Asian and Middle Eastern markets.

Sources familiar with the situation told media that Norilsk Nickel significantly expanded its sales to China during the second half of 2024. The firm is also reportedly partnering with a subsidiary of Chinese gold conglomerate Shandong Gold to boost shipments of copper cathodes to the Chinese market.

Sanctioned firms such as Russian Copper and UMCC are also believed to be exporting metals to China, according to the same sources.

Norilsk Nickel CEO Vladimir Potanin said the company plans to shift part of its copper smelting operations to China in order to protect its exports from the impact of sanctions on financial transactions.

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