Good eyes
@shinmai Looks like the roots are dead and concur with @Glacus… don’t think it’s root rot as the tree would be dead at this stage.
Looks like the roots got too hot and died around the outside of the pot. This created organic material ripe for growth and successive watering allowed moss or some such to grow on the dead roots on the periphery of the pot.
Only seen this once before, but without the green.
As recommended before the outer roots need to be removed all the way around the pot sides and bottom. Follow the black and remove it until it’s all gone.
Compaction is not necessarily the cause of this situation. This sort of drying out can occur in extreme heat. In these cases the capillary action within the pot can accelerate the water transport in the rhizosphere to the surface. Extreme heat, coupled with normal transpiration can make this happen.
Likely this also caused the rust on the leaves, being wet most all the time.
But just in case, please take a thin rod, or piece of 3 mm wire and run it through the rootball top to bottom 1/2 dozen times…
If you’ve already repotted, you can do this while the tree is in the pot.
Aftercare. Water frequently… one can’t overwater a tree in Kanuma if the drainage is good. Every if things look dry during heat spells one can simply still the entire pot in water up to just below the rim until air bubble stop coming out. (Don’t let the Kanuma float away.)
The thing that is hard to figure out is how to keep this azalea healthy in such high heat. I have a friend down south who keeps his trees under ( I think 50% shadecloth) all summer and mists five times a day besides watering. Only morning sun to about 10ish depending on the heat. Bright to mostly full shade afterwards until the summer heat is past.
@Chuah might want to add his experience to this advise.
It also might be a good idea to craft a styrofoam pot (with drain hole) to put around the pot during the extreme summers. This will really help keep the pot from heating up in your hot Spanish weather.
Rust… at this point I’d be more worried about the health of the tree and not want to nuke it with systemic. Dilute Hydrogen Peroxide ought to do the job and perhaps a small muffin electronics fan to keep the air flowing around the tree ought to do the job.
In any event, I’ll keep my fingers crossed for your tree. Please make update posts no matter what happens to the tree. It helps us learn too.
Finally I’d like to ask permission to use your photos for future use including a case study?
cheers
DSD sends