SHANGHAI United Co. Rusal says it plans to cut 300,000
tonnes of aluminum capacity in 2013 after it swung to a loss in
The production cuts are a consequence of global overcapacity,
rising power tariffs and lower metal prices, and would be
targeted at the Moscow-based companys least efficient
smelters, the company said March 4.
The aluminum producer recorded a loss of $55 million in the
year ended Dec. 31, down from a profit of $237 million in 2011,
blaming low prices in particularly challenging
The situation in the aluminum market in the last 12
months requires producers to rationally approach the
utilization of existing capacities and the commissioning of new
ones, Rusal chief executive officer Oleg Deripaska said
in a statement.
Despite global aluminum consumption rising by 6 percent
in 2012 to 47.4 million tonnes, negative investor sentiment led
to (London Metal Exchange) prices for aluminum decreasing by
15.7 percent year on year, taking a large share of the global
production capacity to or below break-even level,
In a separate statement on the planned capacity cuts, he said
the aluminum industrys oversupply crisis ... was
never completely addressed.
Rusals full-year revenues dropped 11.4 percent year on
year to $10.89 billion.
A version of this article was first published on AMM sister
publication Metal Bulletin.