Aluminum Producer, Rusal, Anticipates Reduction Around the Globe

The world’s largest producer of aluminum, United Company Rusal, announced plans on the reduction of aluminum production. The decision was announced by Oleg Deripaska, billionaire controller of the company. The reasons for the reduction are mainly due to falling aluminum prices on a global scale. Deripaska indicated that prices are at an approximate break-even position and the decision to cut back will affect about one-tenth of their production.

The other major factor for the reduction is the slower than expected bounce back of the European economy. The Eurozone crisis has created a downsizing in demand for aluminum. It has been proclaimed that when there is an economic question, aluminum is the worst of all of the metals to feel these effects. Typically, the demands of China can sometimes act as a counter weight, but China is completely self-sufficient in their aluminum needs.

Sources:
http://www.ft.com/cms/s/0/077c8a48-f021-11e1-b7b2-00144feabdc0.html#axzz24k6c1xSA
http://www.theglobeandmail.com/report-on-business/international-business/european-business/rusal-to-cut-aluminum-capacity/article4502758/?cmpid=rss1

The information supplied in this article is not to be considered as medical advice and is for educational purposes only.