Rusal cuts back production by 10.8% to cut back costs

Rusal, the world’s leader in the aluminium sector has cut back their production by 10.8% in the first six months of the year, according to a report released on Wednesday at the Hong Kong Stock Exchange.

The company has experienced a great improvement in their financial results in the second quarter as result of “recovery in the aluminium prices, rise in average realized premiums and tight cost controls.” Rusal was able to cut back costs by 9.8% by cutting back output at inefficient smelters, causing the production to drop by 10.8% to 1.78 million metric tons from a year earlier. In the second half, they are planning to produce 1.8 million metric tons of aluminium.

This leader in aluminium manufacturing operates in 19 countries and I 2013, they accounted for 8% of the world aluminium production and have 69,000 employees.

Rusal says that the world’s aluminium consumption decreased by 6% in the first half of 2014 to 27 million metric tons compared to last year. They also point to the growing demand across the world with China at 13%, Japan and Korea at 10%, Central and South America at 5% and North America at 4.3%.

They also predict that the aluminium consumption will increase by 6.5% globally in 2014 to 55 million metric tons while the deficit in the world aluminium market will be 1.5 million metric tons this year.