LIVE NEWS UPDATE BY GAIN COMMODITY ::
Indian aluminium makers including Hindalco Industries HALC.NS and Vedanta Ltd VDAN.NS are boosting sales to Japan as U.S. sanctions against Russia’s Rusal 0486.HK and import tariffs shake up traditional supply routes.
India’s product has generally not been regarded as high enough quality by Japan’s demanding buyers, who have preferred top-tier producers like Rio Tinto RIO.AXRIO.L , Alcoa (NYSE:AA) AA.N and South32 S32.AX as well as United Company Rusal.
However, imports of aluminium ingot from India doubled in the first eight months of 2018 from a year ago, Japanese trade data shows, while imports of alloy – which include higher-value products – surged 11-fold off a tiny base.
“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,” Samir Cairae, chief executive of Vedanta’s diversified metals business in India, told Reuters.