RUSAL To Slash Aluminum Production by 6%

SEATTLE (Scrap Monster): Rusal, a major producer of aluminum in Russia, declared that it will reduce aluminum production by about 6%, mainly due to the sharp decline in alumina prices worldwide.

The corporation also cited the economic recession and tight monetary policy as grounds for the decision, citing decreased domestic demand for the metal, particularly from the construction and automobile industries.

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Rusal said the annual reduction in aluminum production will be 250,000 metric tons. It did not, however, specify when it would start the anticipated output reduction or which sites would be affected. Additionally, it stated that the decision will not result in any employment losses.

Since the start of this year, the price of alumina has more than doubled globally, reaching about $700 per ton. The spike was caused in part by Australia's output reductions and Guinea's interrupted bauxite supplies. In 2024, aluminum prices had increased by almost 11%.

Despite not being directly affected by the Western sanctions imposed during the war in Ukraine, Rusal has been having difficulties as a result of some Western clients pulling out of new agreements for Russian metal.

By the way, Sweden is home to one of the eleven aluminum factories run by Rusal, the biggest producer of aluminum outside of China.