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RUS - RUSAL owner sees aluminum supply down in 6-9 months

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Reuters quoted Russia's RUSAL as saying that an overhang of aluminium should be reduced through production cuts and said stocks should be slashed to get rid of loss making supplies.

Mr Oleg Deripaska also the aluminium giant's CEO said that he expected global aluminium supply cuts during the next 6 to 9 months. During the next 6 to 9 months we will see rationalization of production programs volumes of production should be decreased to achieve the balance of supply and demand."

Mr Deripaska said that stocks should fall. While the global aluminium industry is in chronic oversupply, millions of tonnes of the metal are held in warehouses and much of these stocks are used for financing purposes. Stocks in LME warehouses were reported at just fewer than 5 million tonnes. All interim stocks are loss making. We should get rid of these losses. Right now the volume of metal in warehouses is twice the reasonable level.

Mr Vladislav Soloviev first deputy CEO of RUSAL said that “We expect demand recovery. We are especially hopeful for the construction sector.”



Source - Reuters

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