Moscow, 25 November 2024 – RUSAL, one of the world's largest aluminium producers, has decided to curtail its aluminium production against the background of record-high alumina prices and elevated risks of a continued negative macroeconomic environment. The first stage of the programme will trim the current output by 250 thousand tonnes.

RUSAL has to purchase more than a third of the required alumina overseas at market prices, which puts significant pressure on its production marginality. Since the beginning of 2024, alumina prices have more than doubled to exceed $700 per tonne, demonstrating record growth rates. As a result, the share of alumina in the cash cost of aluminium inceased to over 50% compared to the normal level of 30-35%.

The increase in alumina prices is not compensated for by a proportional increase in the price of aluminium which is held down by the weak macroeconomic environment and a surplus of supply on the market. On the domestic market, the demand for metals is shrinking against the economic slowdown and tightening monetary policy which lead to a decrease in output among the top aluminium consumers, including the construction and automotive industries.

The launch of the production optimisation programme will not have any impact on the company's social initiatives. RUSAL will maintain in full its workforce at all production sites, as well as all social benefits for employees.