Rusal Plc Maintains Steady Aluminium Production in the Third Quarter Even Though Price Falls

Rusal Plc Maintains Steady Aluminium Production in the Third Quarter Even Though Price FallsUnited Company Rusal Plc of Russia continued a steady aluminium output in Q3 and recomfirmed that the company was reviewing certain operations due to a drop in commodity pieces globally to close to its lowest in the last six years.

In the third quarter, the leading aluminium producer of the world produced 916,000 tonnes which is one percent higher than the earlier quarter. In the initial three quarters, the production grew by 1.4% to 2.7 million tonnes.

In this year alone, the price of Aluminium has dropped twenty percent on the London Metal Exchange falling under $1,500 a tonne compared to levels noted after the financial crisis in 2008-2009. The main reason for the price drop is slowing demand with appetite scaling down in aerospace and automotive sectors with increased exports from China.

With a weaker ruble, Rusal, stated that the sales prices are thirteen percent down compared to the previous quarter. The oversupply is also increasing the trade tensions. The U. S. authorities were asked to investigate allegations regarding misclassification of aluminium exports from China in September by the U. S. Aluminium Association.

In this month, the prices of aluminium in Shanghai touched record lows successively with likely drops further. The mirrors the lower costs of input costs and the regional government's unwillingness to reduce the capacity, as the industry provide jobs contributing to the overall economic growth.

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