“There have been deliveries that haven’t been made and have been delayed,” a well-informed source said. “Some things have been moved and as a result metal will continue to [be shipped after] next year.”
Both Rusal and Glencore, which owns 8.75% of the Russian producer, declined to comment.
One of Rusal’s main outlets – a huge multi-year offtake agreement with global trading giant Glencore covering mostly P1020 ingots and T-bars – is due to expire next year and has not yet been renewed, several sources with knowledge of the matter said.
Negotiations continue, with market participants expecting a new deal albeit for reduced tonnage and monitoring aluminium premiums because significant changes in contracted volumes can typically move spot rates.
The contract, which has never been made public, reportedly required the Russian producer to supply Glencore with roughly 14.5 million tonnes of commodity-grade aluminium over the seven years since 2012. The agreement did not include a...