23 APRIL 2015<a href= http://af.reuters.com/article/metalsNews/idAFL5N0XJ03120150422 ' target='_blank'> Reuters </a>
Rusal may idle 200,000 tonnes of aluminium capacity
Edited by : AL CIRCLE
2 min read
Top global aluminium producer United Company Rusal said on Wednesday it was reviewing its aluminium smelting operations and may idle a further 200,000 tonnes of capacity.
Rusal, which has cut capacity by 800,000 tonnes in the past two years, said its first quarter aluminium production came in at 900,000 tonnes, down two percent on the previous quarter, but up two percent on a year ago.
The Hong Kong-listed company said it expected calendar 2015 production to be flat on the previous year.
Deputy CEO Oleg Mukhamedshin said in March that Rusal was considering shuttering some production due to the weak price outlook and a desire to shift production to cleaner energy sources. The company is looking to have almost all of its production using electricity from hydroelectric power plants.
The review follows weak global aluminium prices and a halving in premiums this year in parts of Asia as China has stepped up exports of semi-manufactured products and logjams at London Metal Exchange warehouses have unwound. Premiums are a delivery surcharge paid to obtain metal.
Alcoa said in March it was reviewing 14 percent of its smelting capacity for closure, curtailment or sale.
Rusal also said on Wednesday it would not be restarting any capacity idled in 2013. It has cut capacity in the past two years by shutting down smelters that used electricity from coal-fired power plants and other fuels, it said last month.
Rusal, which has cut capacity by 800,000 tonnes in the past two years, said its first quarter aluminium production came in at 900,000 tonnes, down two percent on the previous quarter, but up two percent on a year ago.
The Hong Kong-listed company said it expected calendar 2015 production to be flat on the previous year.
Deputy CEO Oleg Mukhamedshin said in March that Rusal was considering shuttering some production due to the weak price outlook and a desire to shift production to cleaner energy sources. The company is looking to have almost all of its production using electricity from hydroelectric power plants.
The review follows weak global aluminium prices and a halving in premiums this year in parts of Asia as China has stepped up exports of semi-manufactured products and logjams at London Metal Exchange warehouses have unwound. Premiums are a delivery surcharge paid to obtain metal.
Alcoa said in March it was reviewing 14 percent of its smelting capacity for closure, curtailment or sale.
Rusal also said on Wednesday it would not be restarting any capacity idled in 2013. It has cut capacity in the past two years by shutting down smelters that used electricity from coal-fired power plants and other fuels, it said last month.
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