Aluminium International Today
Rusal considers 600kt production cut
Edited by : AL CIRCLE
1 min read
Rusal could cut up to 600kt of capacity due to the continued economic downturn, it said. Publishing its Q1 financial results the Russian company said it is currently considering cutting between 300kt-600kt of high-cost smelting capacity starting from H2 2012.
The cut represents 4 to 6% of overall capacity, Rusal said. Its alumina production could also be possibly idled to achieve a production capacity balance. It posted an 84% drop in Q1 net profit as prices fell. Q1 net profit slumped to $74M in the three months ended March from $451M a year earlier.
While global aluminium consumption in Q1 grew 5% y-o-y, the average price of the metal fell 13% to $2177/t, Rusal said. Total aluminium output was up to 1.049Mt in Q1 2012 compared to 1.014Mt a year before. The rise was due to increased production at Sweden’s Kubal and certain Siberian Russia smelters. Rusal prediceted aluminium consumption to grow 7% this year, mainly in H2 with China the largest growing market (11.0% growth) followed by India (10.0%), Japan (5.0%) and the Americas (5.0%).
The cut represents 4 to 6% of overall capacity, Rusal said. Its alumina production could also be possibly idled to achieve a production capacity balance. It posted an 84% drop in Q1 net profit as prices fell. Q1 net profit slumped to $74M in the three months ended March from $451M a year earlier.
While global aluminium consumption in Q1 grew 5% y-o-y, the average price of the metal fell 13% to $2177/t, Rusal said. Total aluminium output was up to 1.049Mt in Q1 2012 compared to 1.014Mt a year before. The rise was due to increased production at Sweden’s Kubal and certain Siberian Russia smelters. Rusal prediceted aluminium consumption to grow 7% this year, mainly in H2 with China the largest growing market (11.0% growth) followed by India (10.0%), Japan (5.0%) and the Americas (5.0%).
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