RUSAL, a leading global aluminum supplier in Russia, decided to reduce aluminum production against the background of record-high alumina prices and a deteriorating macroeconomic environment. 250,000 tons of production will be cut in the first phase.

Alumina prices have doubled to more than US$700/ton since the beginning of 2024, causing its cost ratio to aluminum cash costs to rise from 30-35% to more than 50%, putting pressure on RUSAL’s profits.

Although aluminum prices rose slightly due to oversupply and weak demand, it was not enough to offset the surge in alumina costs. At the same time, an economic slowdown and tight monetary policy have led to a decline in domestic aluminum demand, especially in the construction and automotive industries.

RUSAL said the production optimization program will not affect the company's social initiatives, and employees and benefits at all production sites will remain unchanged.