The Asian nation voluntarily stopped buying Russian product following the 2022 escalation of the Ukraine conflict

Japanese auto parts makers have entered into talks with Russian aluminum giant Rusal as disruptions from the escalating Middle East conflict squeeze supplies, Bloomberg has reported, citing sources familiar with the matter.

Although Rusal's aluminum is not subject to Western sanctions, Japanese firms voluntarily halted purchases in 2022 after the escalation of the Ukraine conflict, contracting Gulf producers instead.

Negotiations to buy primary foundry alloy, used in automotive parts such as wheels, engine blocks, and cylinder heads, have been underway for about a week, the outlet said on Tuesday, noting that some deals could be finalized soon.

"We cannot comment officially," a Rusal representative told Forbes Russia.

Over the past four years, Rusal has shifted its focus to Asia as European clients, once responsible for about half of its demand, scaled back purchases. EU quotas on Russian aluminum, introduced in 2025, further reduced its sales to the bloc. South Korea is among the destinations taking in Russian aluminum, with annual volumes this year estimated at just under 500,000 tons.

A few South Korean auto parts makers are also reportedly in talks with Rusal, Bloomberg said, reflecting the wider impact of Persian Gulf disruptions on commodities markets, with the region accounting for around 10% of global aluminum output. Japanese producers are said to be seeking long-term contracts with the Russian company to secure urgently needed supplies.

The war, started by US-Israeli strikes on Iran in late February, has disrupted shipments through the Strait of Hormuz, affecting energy and bulk materials. Aluminium Bahrain has declared a force majeure, while Emirates Global Aluminium has delayed some shipments. Both companies are key exporters of the product to Japan and South Korea.

Some suppliers to Japan have suspended shipments to sell at higher prices. Last week, Rio Tinto paused negotiations with Japanese buyers for second-quarter primary aluminum and withdrew an initial $250 per ton premium offer.

Aluminum prices hit a nearly fouryear high in March, with LME threemonth futures trading around $3,426.50 a ton on Wednesday amid supply concerns tied to Middle East disruptions.

(RT.com)