Rusal Plans to Launch Aluminum Trading on St. Petersburg Exchange

Rusal Trading House expects to begin test trading of aluminum on the St. Petersburg International Mercantile Exchange (SPIMEX) by the end of this year, according to General Director Igor Ignashov. Speaking on October 31, Ignashov emphasized that the sale of aluminum on SPIMEX will serve as an important experiment for the market, offering insights into the demand for such a trading tool. However, he did not specify whether the aluminum to be traded would be standard metal or the more expensive Allow-branded variety.

Currently, aluminum in Russia can only be purchased through direct contracts with Rusal, without the participation of traders. Trading on SPIMEX could potentially provide a more convenient sales avenue. At present, Russian aluminum prices are linked to the London Metal Exchange (LME) quotations, which operate through warrants that confirm metal ownership. However, due to sanctions imposed by the UK and the US in the spring of 2023, warrants for Russian metals were suspended.

By the time the United States banned imports of Russian copper, nickel, and aluminum, Russian aluminum accounted for over 91% of the metal in the LME warehouse system. Shortly after the sanctions were implemented, aluminum prices on the LME began to climb rapidly, with exchange prices surging by 9.4% almost immediately in response.