Rusal Cuts Aluminum Production by Over 6% to Combat Rising Alumina Prices and Macroeconomic Risks

Published: Nov 26, 2024 12:17

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Rusal announced a reduction of over 6% in aluminum production to address the surge in alumina prices and macroeconomic risks. This production cut is part of its production optimization plan. As the world's second-largest aluminum producer, Rusal noted that supply disruptions of bauxite from Guinea and Brazil, as well as production halts in Australia, have significantly driven up alumina prices. This year, alumina prices have doubled since the beginning of the year, now exceeding $700/mt. With alumina's share in aluminum production cash costs rising from the normal 30-35% to over 50%, Rusal expects its annual production to decrease by 250,000 mt. The company stated that despite the challenges, there will be no layoffs and revealed that over one-third of its alumina needs to be purchased at market prices from the international market.

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