Russian Firm Eyes Scrap Metal

Russian metals company RUSAL has begun negotiating the purchase of companies producing alloys from aluminum scrap. Market watchers believe that RUSAL does not simply buys new assets but carries out an unofficial task of the Russian government to regulate this business and clear it of criminal structures.

Russian aluminum giants SUAL holding and RUSAL have had little interest in the recycling of aluminum so far. SUAL currently buys on the market some scrap for its Kamensk-Uralsky smelter. RUSAL processes only its own aluminum scrap at its Resal plant in Samara.

However, according to Kommersant, a Russian newspaper, RUSAL has taken up secondary recycling of aluminum this summer. The company is reputed to be negotiating the buying up of close to a half dozen smelting plants.

Sources claim that RUSAL is determined to get a dominant position the market. “In fact, it is almost a state-run project,” a market watcher told Kommersant. “RUSAL got a sanction from officials to stage a large-scale buying out of assets of the secondary recycling of aluminum promising to make the market more transparent and oust criminal structures. The company plans to purchase several smelters with the total volume of 100,000 metric tons by the end of the year to drive the alloys output to 400,000 tons by the next two or three years

RUSAL confirmed to Kommersant that it is interested in the secondary recycling of aluminum and is now considering ways to develop this sphere but would not further comment on the possible purchase of new assets. “It is too early now to mention any projects,” they say at RUSAL.