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Rusal affected by the difficulties of Norilsk Nickel
Edited by : AL CIRCLE
1 min read
Persistently low aluminum prices are not the only difficulty faced by the world's leading producer, Rusal. The fall in profits of Norilsk Nickel, the Russian giant owning 28% stake in Bloomberg, was forced to revise yesterday sharply the amount of its losses last year. The loss has finally reached $ 337 million, not 55 million as it had said in early March, when publishing its accounts. In 2011, the group had recorded 237 million profits. The surprise is not complete. Rusal had warned that it would revise its results after the announcement on April 12, an annual profit down 41% in Norilsk Nickel. But analysts do not expect such a difference.
The aluminum market is in surplus years. On the London Metal Exchange, metal prices have declined 10% since January, after a sleepless year 2012 and an 18% drop in 2011. "The price level is already so low this year that makes part of the aluminum production [in the world] unprofitable," explained Friday Commerzbank. Rusal has recently decided to take action. Earlier this month, the group has ensured that it would reduce its output of 300,000 tons, 7% this year.
The aluminum market is in surplus years. On the London Metal Exchange, metal prices have declined 10% since January, after a sleepless year 2012 and an 18% drop in 2011. "The price level is already so low this year that makes part of the aluminum production [in the world] unprofitable," explained Friday Commerzbank. Rusal has recently decided to take action. Earlier this month, the group has ensured that it would reduce its output of 300,000 tons, 7% this year.
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