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"Rusal" expects price increases

Referring to the statement of Vladislav Soloviev, first deputy general director of «Rusal», the spokesman said that the leader of the aluminum industry is not going to re-start the stalled earlier production as long as the light metal price does not reach USD level 2500 / tonne. Previously, production was halted at the aluminum plants with high costs, in particular on the Volkhov, Theological, Volgograd, Ural and Nadvoitsy factories, and on the Nigerian plant «Alscon». Back in the late summer of last year, representatives of «Rusal» said the cease smelting at these enterprises — at least as long as the light metal price would not return to the level of 2.4 thousand USD / tonne… However, in late July, the price of aluminum on the London Stock Exchange does not rise above 2020 USD / tonne, up to a maximum level of 2500 USD / ounce, it was observed in 2011.

Now «Rusal» leads the program in place aimed at reducing inefficient in economic terms of production capacity. In particular, in the course of this project the smelting of aluminum last year decreased by 7.6% to 3.857 million. Tons versus 2012. This year the company expects to lower the bar for another 9%, to the level of 3.5 mln. Tons. Losses «Rusal» in the last year increased 6-fold with respect to 2012 and amounted to 3.2 bln. USD, the reason for that became non-cash write-off, the size of which amounted to 1.9 bln. USD.

The company also continues to introduce measures aimed at strengthening the light metal consumption in the domestic market. For this work is carried out in several directions — work with clients helps to increase the demand, and the company is expanding the use of aluminum in various sectors. Another area under development involves the substitution of imports, and here the Russian producer loom excellent prospects, fueled by both economic and political factors. The government is ready to support the well-developed sector, which, however, are not able to show his potential due to competition and dumping of foreign firms. It is about products such as, for example, road wheels, made of aluminum alloy, or household and building profiles. These Russian goods at the moment is in no way inferior to foreign analogues.

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