Rusal to slash output

 

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 Caribbean Money Daily


Alumina prices are up, and with reduced demand globally, Russian aluminum producer UC Rusal has announced that it will cut production by approximately six per cent or 250,000 metric tons per year.

Earlier this year in April the three-month aluminum contract on the London Metal Exchange was up 0.8% at $2,644 per metric ton. Alumina prices jumped to around US$700 a ton in 2024 due to production disruptions including in Guinea and Brazil.

There is hope that new production, including India, coming online by 2025 will reduce prices meanwhile. Alumina, used for the manufacture of aluminum, is used in the transportation, construction and packaging sectors.

Together, the disruptions in supplies of bauxite from Guinea and Brazil and output suspensions in Australia resulted in the price hikes.

It is not known if Jamaica will be impacted by the planned cuts by Rusal. 
In Jamaica UC Rusal currently holds majority shares in West Indies Alumina Company (WINDALCO) which has plants at Ewarton, St. Catherine, and Kirkvine, Manchester, as well as ALPART (Alumina Partners), Nain, St. Elizabeth. This represents 23 percent of the company’s overall production output.

Altogether, more than half of the island's alumina output falls under the producer. The company which operates 11 plants globally did not say at which plants it plans to cut production.

Overall Rusal is the second largest manufacturer of alumina, second only to China. 
The company which also manufactures aluminum and utilises the ore for its operations was forced in 2024 to buy at market price in many cases. Rusal bought higher amounts from China, India and Kazakhstan and also bought a 30% stake in a Chinese alumina refinery,

RUSAL, present in 20 countries, saw net profit for the first half of 2024 increase by 34.5% to US$565 million. Meanwhile revenue decreased by 4.2% to US $5.695 billion. The company's capital expenditures increased by 23.7% to US $516 million.

Caribbean Money Daily

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