Rusal will optimize production and reduce aluminum production by 6%

According to the foreign news on November 25. Rusal said on Monday, with record alumina prices and deteriorating macroeconomic environment, the decision was made to reduce alumina production by 6% at least. 

Rusal, the world’s largest aluminum producer outside of China. It said, Alumina prices have soared this year due to disrupted supplies in Guinea and Brazil and suspension of production in Australia. The company’s annual production will fall by 250,000 tons. Alumina prices have more than doubled since the start of the year to more than US$700 per tonne.

“As a result, alumina’s share of the cash costs of aluminium has risen from a normal level of 30-35% to over 50%.” Pressure on Rusal’s profits, meanwhile economic slowdown and tight monetary policy have led to lower domestic aluminum demand, especially in the construction and auto industry.

Rusal said that the production optimization plan will not affect the company’s social initiatives, and that the staff and their benefits at all production sites will remain unchanged.