Rusal cuts output by 8% amid weak aluminium prices

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Russia’s United Company Rusal , the world’s biggest aluminium producer, said its drive to cut output had helped it to rein in costs and it might take further steps to reduce overheads due to weak aluminium prices.
Rusal, led by Russian tycoon Oleg Deripaska, said on Thursday its programme to reduce output had allowed it to save $40 per tonne in the cash cost of aluminium.
The firm’s aluminium costs per tonne were $1,911 in the second quarter, while aluminium futures were trading around $1,841 per tonne on Thursday.
As well as low aluminium prices, Rusal has the expense of servicing its net debt of around $10 billion.
“Rusal continues to react to the current market conditions and may consider further actions to improve its cost position in the industry,” Vladislav Soloviev, its first deputy chief executive, said in a statement.
Rusal has cut aluminium production by 324,733 tonnes, or by 8 percent of 2012 production volume, the company added. This compares with its goal to cut output by 357,000 tonnes this year as a whole, Reuters reports.
The company also plans to cut 2014 aluminium production by 647,504 tonnes, or by 15 percent of 2012 volume.
As of Oct. 17, aluminium production had been mothballed at the Volgograd, Urals and …

Source: BusinessDay

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