Bloomberg reported that United Company Rusal may reduce output by as much as 8.4% this year to allow prices to recover.
Mr Oleg Deripaska CEO of Rusal said that “The company will idle 350,000 tonnes of capacity at five of its plants with high production costs until aluminum rises to USD 2,400 per tonne. Aluminum prices fell more than 13% this year to USD 1,799 per tonne as global stockpiles reached records and last month traded at the lowest level since 2009.”
He said recently that it would lower production by 300,000 tonnes in 2013 from the 4.2 million tonnes last year. About 40% of producers globally, excluding China, are loss making at the current price while each further USD 50 per tonne drop on the London Metal Exchange will make another 1.5 million tonnes of capacity unprofitable.
豫公网安备41010502003434号