RUSAL switches to loss in H1

United Company RUSAL Plc switched to loss-making in the first half as aluminium prices continued to fall on oversupplies, and urged the industry to take further curtailments to tackle overcapacity.

The world's largest aluminium producer posted a recurring net loss of $156 million in the first six months, compared with a recurring net profit of $219 million a year earlier, RUSAL told Hong Kong Stock Exchange today.

Recurring net profit is defined as adjusted net profit plus the company's net effective share in Norilsk Nickel, of which RUSAL completed the sale in April this year.

RUSAL's total net loss in the first half of the year was $439 million, compared with a profit of $1 million a year ago, the company said in the interim report.

``The current situation requires our industry to take a more disciplined approach towards existing inventory levels and capacity utilization rates, as over a third of global aluminium production is loss-making on a cash-cost basis at the current price level,’’ ceo Oleg Deripaska said in the report.

RUSAL plans to accelerate cuts at its least-efficient smelting facilities after having reduced output by around 100,000 tonnes in the first half, Deripaska said.

On the demand side the situation remains positive, particularly in construction and transportation industries in China, South East Asian countries such as Thailand and Indonesia, and Middle East, RUSAL said.

Premiums in Asia, as reflected by the CIF MJP indicator, grew through the first half from $240-245 per tonne in January to $249 per tonne in June on the basis on regional demand growth, it said.

RUSAL expects to have its shares listed on Moscow Stock Exchange by the end of this year, according to today’s statement.