China expands imports of Russian metals

(MENAFN) Beijing has significantly expanded its imports of Russian metals as Moscow turns more decisively toward Asian markets amid sweeping Western sanctions, according to customs figures cited by recent reports.

With the U.S. and its allies targeting Russia’s base metals sector to reduce its income during the Ukraine conflict, China has emerged as a critical partner for Russian exporters. Overall trade between the two countries hit record levels last year, surpassing $240 billion.

From January to May, China’s imports of Russian aluminum rose by nearly 56% year-over-year, reaching close to one million tons. Copper shipments surged 66%, while nickel imports more than doubled, based on data from Trade Data Monitor.

Although major Russian producers like Rusal and Norilsk Nickel have not been directly sanctioned, their access to global commodities markets has been severely limited.

In April 2024, the U.S. and the U.K. barred new deliveries of Russian aluminum, copper, and nickel from entering the London Metal Exchange (LME) and Chicago Mercantile Exchange (CME), while also banning imports of these materials. Prior to that, Washington imposed a 200% tariff on aluminum products from Russia, and Canada introduced a full import ban on Russian aluminum and steel.

The European Union also introduced a phased ban, establishing a 275,000-ton aluminum import quota for Russian metal valid until February 2026.

Moscow has denounced the measures as “illegal,” warning that they will ultimately harm the sanctioning countries. The restrictions triggered sharp increases in global metal prices, with aluminum experiencing its largest surge on the LME in decades.

In response, Russia has been shifting its exports toward Asia and the Middle East. Industry insiders revealed that Norilsk Nickel began boosting sales to China in the latter half of 2024 and is reportedly collaborating with a subsidiary of Shandong Gold to increase copper cathode shipments.

Other Russian firms under sanctions, such as Russian Copper Company and UMCC, are also believed to be sending metal to China, according to sources familiar with the matter.

Norilsk Nickel’s CEO, Vladimir Potanin, has confirmed the company’s intention to relocate some copper smelting operations to China, aiming to protect its exports from the growing pressure caused by financial restrictions tied to the sanctions.

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