Reuters
UPDATE 2-RUSAL can withstand aluminium price fall to $1,900/t
Edited by : AL CIRCLE
2 min read
Top world aluminium producer UC RUSAL, which has sought and won concessions from creditors as prices of the metal have fallen, can cope with further price declines, the company said on Wednesday.
"As of today, even though it is difficult, RUSAL smelters can work with $1,900/tonne," the RUSAL press office said.
Aluminium prices ended last year near 18-month lows on concerns about economic weakness and oversupply, prompting Alcoa Inc to announce the closure of higher-cost European smelters. RUSAL has ignored pressure to follow suit.
Moscow-based RUSAL, which is responsible for around 10 percent of world primary aluminium output and operates 16 smelters producing 4.7 million tonnes of aluminium per year, maintains it is safely clear of the high-cost bracket.
It has given no indication it plans to idle smelters, even as traders beg for global cuts to put a floor under prices.
"Despite weak aluminium demand growth in some regions during the past six months, it remains well above the 2009 recession levels. However, uncertainties seen in 2011 will continue to dominate the outlook for the metal markets in the months to come," RUSAL's press office said in an e-mailed response to a request for comment.
It added it was coping so far with cost pressure from rising power prices as well as falling prices, like many other global producers.
"As of today, even though it is difficult, RUSAL smelters can work with $1,900/tonne," the RUSAL press office said.
Aluminium prices ended last year near 18-month lows on concerns about economic weakness and oversupply, prompting Alcoa Inc to announce the closure of higher-cost European smelters. RUSAL has ignored pressure to follow suit.
Moscow-based RUSAL, which is responsible for around 10 percent of world primary aluminium output and operates 16 smelters producing 4.7 million tonnes of aluminium per year, maintains it is safely clear of the high-cost bracket.
It has given no indication it plans to idle smelters, even as traders beg for global cuts to put a floor under prices.
"Despite weak aluminium demand growth in some regions during the past six months, it remains well above the 2009 recession levels. However, uncertainties seen in 2011 will continue to dominate the outlook for the metal markets in the months to come," RUSAL's press office said in an e-mailed response to a request for comment.
It added it was coping so far with cost pressure from rising power prices as well as falling prices, like many other global producers.
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