Rusal Reports 2022 Financial and Operational Developments
Rusal disclosed its 2022 performance, detailing higher production costs, increased aluminum output, a drop in profits, and a broadening of supply channels. The summaries come from a report cited by TASS.
The company noted that inflation and geopolitical tensions pushed energy and raw material prices sharply higher. This surge, coupled with a stronger ruble and logistical challenges, pushed the cost of producing aluminum up by 31.8 percent to 2,190 US dollars per tonne, up from 1,661 dollars per tonne in 2021. The price shift reflects a difficult operating environment where input costs moved faster than sales prices in some regions.
Rusal also reported a significant dip in profitability, with net income decreasing by 53 percent to 725 million dollars. Sales volumes of aluminum declined slightly, down 0.2 percent to 3.896 million tonnes. Despite these headwinds, the group highlighted steps taken to strengthen resilience, including diversification of supply chains and expansion into the expanding Russian market while pursuing growth opportunities in Asia. These strategic moves were aimed at reducing exposure to any single market and capturing new demand sources in a changing global landscape.
Industry observers have noted a renewed interest in aluminum for construction projects, a trend that appears to support demand even amid broader volatility. Analysts underscored that the material’s versatility and ongoing replacement of other materials in certain segments help sustain interest, particularly in infrastructure and building applications. This expert assessment aligns with broader market signals suggesting aluminum can play a key role in projects where weight savings and durability matter. [Citation: TASS]