European value-added aluminium firm Constellium NV currently has no plans to stop purchasing primary aluminium from UC Rusal despite the near-global condemnation of Russian products due to the country’s invasion of Ukraine in February. Such was the story conveyed to Reuters late last week by a company executive.
The unidentified executive told Reuters that aluminium from Rusal makes up only one-twentieth of Constellium’s total purchased feedstock. Next year’s purchases from Rusal will likely be similar he said, but a decision on the exact amount is still pending.
“If there is any sanction we will respect it, today there is no sanction so we don’t see any reason why we should not get metal from there. I guess if the economics are good we will continue to work with them.”
The Constellium exec went on to shrug off concerns of reputational harm from the move.
Rusal has yet to come under sanction itself, though some countries have limited Russian firms’ access to their markets in general. However, individual firms have sworn off Rusal’s products, including Novelis, for the upcoming year.
For its part, a spokesperson from Rusal said it is not terribly concerned at the loss of business.
“We have hundreds of clients globally, representing one of the strongest and most diverse customer bases in the industry. Our business is not defined by those few who choose to buy their aluminium elsewhere.”
While Rusal has lost some clients due to the invasion of Ukraine, others have secured discounts on delivered aluminium to take into account the increased risk of sanctions in the near future according to traders and producers at an aluminium convention in Spain. However, the Constellium executive said he did not know of any such discounts on offer from Rusal.
