Rusal Shifts Focus to Asia as Regional Sales Surge in 2024

Rusal

In the first half of 2024, Russian aluminum giant Rusal continued to shift its business focus from Europe to Asia, with the region now accounting for over 40% of its total revenue. This strategic realignment comes in response to ongoing geopolitical challenges and restrictions on Russian metal in Europe and the U.S. following the Ukraine conflict.

Strong Sales Growth in Asia, Decline in Europe

Rusal's revenue for January to June 2024 dropped by 4.2% year-on-year to $5.695 billion, mainly due to lower aluminum prices and premiums. However, sales to Asia, particularly China, increased significantly, rising by 19.9% compared to the first half of 2023, reaching $2.37 billion. In contrast, sales to Europe plummeted by 32.7% to $1.26 billion during the same period. As a result, Asia accounted for 41.6% of Rusal’s revenue in the first half of 2024, up from 33% the previous year.

Rusal also bolstered its raw material supply chain by acquiring a 30% stake in Chinese alumina producer Hebei Wenfeng New Materials in October 2023, contributing to a nearly 19% increase in alumina output. Aluminum production rose slightly by 2.3%, while net profits surged by 41.6%, driven by a 22% reduction in non-alumina raw material costs.