Recent tensions between Russia and Ukraine have kept aluminium prices higher in recent days, but 00486.HK, one of the world's largest aluminium producers, has not benefited, falling nearly 24.86 per cent in the past three trading sessions. In addition, the company announced on Tuesday morning that production at its alumina refinery in Ukraine had been suspended, adding to concerns about Rusal's production operations.
Rusal fell another 10.79% to HK $4.88 on Tuesday as of 15RV 25.
Rusal issued an announcement early Tuesday referring to the temporary closure of production at the Nikolaev alumina refinery in Ukraine's Nikolaev region.
The announcement pointed out that production at the alumina refinery in the Nikolaev region of Ukraine had to be temporarily closed due to inevitable logistics and transportation challenges in the Black Sea and surrounding areas. Although alumina production in this area will be severely reduced in the short term, it will not immediately have a broader impact on aluminum production in the relevant aluminum smelters of the Group, and the company is regularly reviewing the future demand for alumina. The announcement also confirmed the market's previous speculation that the conflict between Russia and Ukraine would restrict Rusal's production and business operations.
In addition to producing alumina in Russia, Rusal also has branch plants in Ireland, Jamaica, Ukraine, Guinea and Australia. According to the previous announcement, the alumina plant at the Ukrainian production base accounts for about 1/5 of the company.
