formingpolicy:whenbonusesgodown, ourprices
will alsodrop”, S.Belsky said.
OnFebruary1, 2014, aspartof theRusal
management reshuffleprogramS.Belskywill become
OperationsDirector,Rusal SalesDepartment
stepping intoR.Andrushin’s shoes.R.Andrushin, in
his turn,will takeupS.Belsky’spost.
“Due to themanagement reshuffle the sales team
focusedon thedomestic saleswhich isbecoming
Rusal’sprioritywill be strengthened.Nowadays such
industry leadersasAlcoa,RioTinto, andHydroare
turning to regionalmarkets.Withnoexception,
formacroeconomicandpolitical reasonsRusalwill
alsobe focusingmoreon thedomestic sales.The
new tradepolicywhichcame into force in January
2014 shouldhavebeenadopted long timeago. Its
adoptionwas stimulatedbya trivialneed in increase
of efficiencyof thecompany’sproductionand sales.
Inaddition to that,weareboundbyagreementswith
ourpartners: railway,motorvehicle transportation,
stevedore, andmanymorecompanies”, saidR.
Andrushin.
Peculiaritiesof technological and logistics
processesmakeRusalperformorders strictlyon
time. Ignoring termsof supplieswill costRusal’s
customersa lot.Thecloser theorder isplaced to the
endof theproductionmonth, themoreexpensive it
becomes.Eventually, aquestionofprofitabilitycan
bebrought. “Thenew tradepolicyof thecompany
will giveRussiancustomers somepreferences.After
thefirst10daysof eachmonthweorder railwaycars
todispatchordersandagreeon termsof supplies
withcustomers fromall overRussiaandabroad.
With long-termagreementsasacorner stonewe
ensurecareful schedulingandbudgeting.Rusalhas
someGermanandAmericancustomersplacing
ordersbefore the technological cycleallows it.Our
customers suchasNovelis, buying200—300ktplace
orders fourmonths inadvance. 60dayspassbetween
placing theorderand itsperformance.Therefore
our requirementsarenothingextraordinary”,R.
Andrushincontinued.
Rusal’s innovationscannothelpkindling its
customers’ interest. “Itgoeswithout sayingweneed
toconclude long-termagreements.However,now,
with theRussianmentality inmind (donothave thy
cloak tomakewhen itbegins to rain),whatwill you
do ifwedonot signanythingby theendof theyear
forknowing inertnessof themarketplayers, this
maybecomepossible?”askedS.Andreev,General
Manager,Tatprof.
“Incaseall themarketplayers refuse signing long-
termagreements Iwill recommend them to study
Rusal’s salespolicymorecarefully forweconsider
long-termcontractsourfirstpriority. If thedomestic
marketplayers refuse them,wewill turn to the
internationalmarket focusingonEurope,Asian,
Americaetc. If eventually, youchangeyourmind,
wewill let youknowwegivepriority to long-term
contracts.Youhavebeenofferedgood termsbut you
messed theopportunity.Nowwehave to sell you the
leftovers”, S.Belsky said.
“As ithasbeenannouncedbefore,Rusalplans to
reduceprimaryaluminiumoutput in2014.Wehave
also revokedanumberof international orders to the
advantageof thedomesticmarket: aluminiumorders
for220kt, alloys: 160kt, cylinderbars: 56kt, etc. If
someoneof you refuses signingcontractswithus, he
willnotbeable toutilizehisproductioncapacities
properlyand, of coursewill loseprofit.Rusal exports
about80%of itsproductsandwecanexport even
more ifwedonotfind salesmarkets inRussia”, said
R.Andrushin.
“Doyoumakeadifferencebetween the long-
termscontractsand spot salesbonuses?”askedA.
Volfson,Director forLogistics,UncomtechTrade
House.
“Following the instructionsofTheFederal
AntimonopolyServicewedonotmakeany
differencebetween them.Bonuseswill be the same
for long-termscontractscustomersand for those
preferring spot sales.Thepricewill be the same
aswell.Wecanonly raisebonuses5%once in two
months”, S.Belsky replied.
Delegatesalsocould
nothelpavoiding the issue
of apossibleestablishing
RussianStateAluminium
Fundor, inotherwords,
national aluminium
stock. “TheFundwillhelp
reduce themarket load.
Bydriving1Mt from the
world trade ina fewyears
we support theRussian industryand
keep thebalanceofdemandand supply
in theglobalmarket.Thegovernment
will beable to sellmetal bought at low
priceswhen themarket recovers.The
money invested in thealuminiumwill
payoff in spades”, saidS.Belsky.
AtSovietUnion timesnon-
ferrousmetals strategic reserveswerekept atmany
enterprises.Due to themmanyenterprisesdidnotgo
broke in the1990salthough theeconomic relations
were fullydestroyed.Due to thementerpriseswere
able topayworkers.Chinahaschosen the sameway
having stocked1Mtof aluminiumduring2008—
2009when themetal cost less than$1.5k/t.About
330kt at anaveragepriceof$1.8—2k/twere sold in
2012 from stock. “Chinaaluminium fundensured
liquidityof themarket.Whendemandwasgrowing
rapidlydeficitwasavoideddue to supplies from
the state reserve.Whycannotweuse theChinese
experience tobenefit from?”askedR.Andrushin.
Indeed,whynot?
l
ReviewbyLeonidKhazanov.
˚
˚
At SovietUnion times
non-ferrousmetals strategic
reserveswerekept atmany
enterprises.Due to them
manyenterprisesdidnotgo
broke in the1990salthough
theeconomic relationswere
fullydestroyed.
57
Special Issue 2014
Metal Supply&Sales
