Rusal’s shares sink, sends warning of Coronavirus
The Russian aluminium giant Rusal anticipates the coronavirus epidemic to negatively affect the aluminium market in China during the first half of 2020.
On 28th February’20 the company stated that its Hong Kong-listed shares down by11% to a 2-month low.
Multiple countries from various continents are reporting their coronavirus affected numbers. Though medical science is trying hard to get rid of this pandemic virus, investors are dumping their equities as they are expecting a global recession.
Rusal, the world’s largest aluminium producer outside China presumes the coronavirus to stimulate a bigger aluminium supply surplus and weaker demand than formerly expected.
The alumina refining in China, in a few particular areas, got suffered due to logistical issues for both bauxite arrivals and shipping out of alumina.
Aluminium producers are familiar with their complex supply chains. Rusal mines some of its bauxite in Guinea and turns it into alumina in Ukraine before its Siberian smelters use that to produce aluminium.
Rusal’s 2019 aluminium production was steady at 3.75 million tonnes, while aluminium sales rose 13.8% to 4.17 million tonnes as the company sold inventory accumulated in 2018 when it was subject to U.S. sanctions.
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