United Co. Rusal (486), the world’s largest aluminum producer, said the euro currency crisis may cause a “cyclical panic” in commodity markets, prompting a decline in metal demand from smaller producers.
A concern for the industry is “how quickly the euro goes down and what’s the transition mechanism in China,” Rusal Chief Executive Officer Oleg Deripaska said in Bloomberg TV interview.
Rusal is concerned that small customers may be affected more than larger companies and that they will reduce orders next year, Deripaska said.
Declining aluminum prices help create a “healthy environment” to close the gap between oversupply and demand, Deripaska said.
Falling prices have forced the closure of about 3 million tons of capacity so far, “helping create a healthier environment,” he said. Prices won’t fall to $1,300 a ton, seen after the global financial crisis, he said. “That’s impossible,” he said.
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