MCC 2014 - page 58

I
nhiswelcome address A. Romanov,
President,RUMSSdrew thedelegates’ attention
to theneed in improvingbilateral cooperation ina
volatilemarket.Then thefloorwasgiven toS.Belsky,
Director forSales inRussiaand theCIS,Rusalwho
gaveanoverviewof the stateof things in the industry
asawholeand inhiscompany inparticularpointing
out themeasures thecompanyhad taken to improve
sales statistics.
According toS.Belsky, 2013year’s results show
thatRussiancompaniesuse some660ktofdomestic
and460ktof importedaluminiumproducts.Thus,
increase in import still remainsa seriousproblem
to theRussianmarket.Aluminiumoutput inRussia
dropped50—60%during2008—2009,while import
grew9%.Mostunfortunately,nothinghaschanged
since then, andexpectedly, theoutputwill fall to
600ktby2016—2017. “However,wedonot sit idle.
Rusal isdoinga loton stimulating thedemand for
aluminium indifferent industries including the
automotiveand ship-building segments focusing
onapplicationof aluminium-scandiumalloys.
Rusalhasestablishedaclosecollaborationwith the
Russiangovernmentwho is ready togiveahelping
hand toput restrictionsongreyaluminium import.
Inaddition to that,Rusal is innegotiationswith
international liquidmetal suppliersonestablishing
aluminium semis joint venturesonRusal facilities.
On theotherhand,Rusal isopen tocooperationwith
Russiancompanieswaswell.Due to thesemeasures,
aluminiumconsumptionmaygrow from1.1 to
2.5Mt.” reportedS.Belsky.
Undoubtedly,Rusal enterprisesarehaving tough
times.AnumberofRusal facilities in theEuropean
partofRussiaand theUralshavebeen stoppeddue
to increase inenergy tariffs.Theirorderswill be
performedbyRusal Siberian facilities. S.Belskyalso
shareddetailsof theRusalnew tradepolicyas regards
to salesof crudealuminium (secondarymetal and its
alloysexclusive), aluminiumwiresand rondels.The
policy focusingonensuring transparent andnon-
discriminatoryconditions for sales in thedomestic
market includes: anycompanywilling tobuy
aluminium should send the followingdocumentsby
faxoremail toRusalTradeHouse:
P
AcopyofCertificateofRegistrationwith
UnifiedStateRegisterofLegalEntities;
P
AcopyofCertificateofRegistrationwith the
TaxAuthorities;
P
Statement fromUnifiedStateRegisterofLegal
EntitiesofRegistrationof theContractor issuedno
less than30daysbeforeconcluding theagreement;
P
Acopyof theCompanyCharter (full version);
P
Documentsacknowledging thepowersof the
parties.
Inaddition, thepotential customer shouldalso
present a signedagreementon supplies. In thefirst10
daysof themonthnext to themonthofdispatching
thecustomer should sendanorder form specifying
range, size-types, grades, amount, termsofpayment,
etc.To speedup supplies thecustomercanalsomake
anadvancepayment.
Basingon theorder forms,RusalTradeHouse
distributes its freevolumes following the scheduleof
supplies foreachorder form registered inaqueue.
Requirementsof each form inaqueueare satisfied
after thepreviousonesaredispatched.The following
prioritiesare taken intoaccount:
1. Long-termagreementsorder forms;
2.Order formswithadvancedpayments;
3.Order formswithout advancedpayments;
4. Lateorder forms.
“Inmybelief, signing long-termagreements
betweenRusal andproducersof aluminiumcables,
shapes, or rolled stock is thebest solution toensure
business sustainability in thevolatilemarket.No
matterwhat thevolumesare,wecanplanour
productionutilizationand thenumberof railway
carsweneed fordispatching.Wealsoconsider
apossibilityof signingadditional agreements.
Following instructionsof theFederalAntimonopoly
Service, todaywe sell anumberof aluminium
grades$100cheaper in thedomestic than in the
internationalmarkets.Wewould like tochange the
instructions inorder toestablishamore fairprice-
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