A larger quantity of Indian aluminium products are being sold in Japan due to sanctions on Russia by US, Mint has reported. Russian imports into Japan fell by 21 per cent even as Japan increased its aluminium imports, according to trade data.
Indian aluminium makers like Hindalco and Vedanta have benefited from the sanctions slapped against Russian aluminium makers like Rusal. Rusal is the world’s second biggest aluminium manufacturer. The rapid change in traditional supply chains has happened due to tensions between Russia and the US.
The Japanese market had not considered Indian aluminium sources as of high quality in comparison to their existing suppliers. However, in the first eight months of the year, imports from India have doubled.
“Because of the sanctions, consumers would like to ensure some security of supply, so they’d like to prefer multiple suppliers instead of one supplier,” Chief Executive of Vedanta’s diversified metals business in India Samir Cairae, told Reuters.
However, products sold from India are ingots rather than value-added products like billets and slabs. Japanese buyers are diversifying their sources rapidly in recent times. This has benefited Indian aluminium makers.