The increase in alumina prices could seriously worsen Rusal’s profitability despite rising aluminum prices. This growth will also be supported by the recent announcement that mining company Rio Tinto will suspend alumina shipments from its operations in the Australian state of Queensland. Bloomberg.
How Wrote The media note that the increase in foreign exchange prices forces buyers to abandon Russian metal, and as a result, Rusal will not be able to benefit from the increase in aluminum prices.
With report Rusal stated that in 2023, the company’s alumina purchase expenses increased by almost 10%, and from 2021 onwards, by 46% in total.
Aluminum Association last December registeredIt was stated that Rusal’s raw material supply dropped to 62% due to the loss of control of the Nikolaevsky alumina refinery, supply from a facility in Australia and the loss of half of the supply volume from Ireland.
Also according to the latest news Rusal’s marginality dataIt fell below 6.5%.
As a result, the company’s board of directors voted on May 16. Recommended Refusal to pay dividends.
Let’s remember, in April 2024, aluminum showed the strongest growth since 2018. How registered Yaroslav Kabakov, Director of Strategy of Finam Financial Group and Professor of the Higher School of Economics, investment analyst Evgeny Kogan, Rusal will not be able to benefit from the increasing metal prices due to the sanctions imposed by the USA.
last june recognizedRusal plans to build the first new alumina refinery in Russia since 1970 in the Leningrad region, which will increase the industry’s raw material security.
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Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.