The management of Rusal (one of the world's largest aluminum producers) has decided to cut aluminum production by 250,000 tons due to a sharp increase in alumina prices and a negative macroeconomic situation, the company's press service reported.
As the company explained, Rusal purchases more than a third of alumina in the global markets at exchange prices. Since the beginning of 2024, alumina prices have almost doubled, exceeding $700 per ton.
As a result, the cost of alumina accounts for over 50% of the cost of aluminum, compared to the usual level of 30-35%.
However, the increase in the price of alumina is not compensated by a proportional increase in the price of aluminum.
In addition, leading aluminum-consuming companies have reduced their output due to the tightening of monetary policy and the slowdown in economic growth. This concerns manufacturers of automobiles and construction materials.
Rusal assured that the reduction in aluminum production will not affect the implementation of the company's social programs. The number of employees will also remain the same.
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