Rusal to cut aluminum output by 6%
Rusal said disruption to bauxite supplies from Guinea and Brazil and output suspensions in Australia contributed to a surge in alumina prices.
Rio Tinto Group lifted restrictions on exports of alumina from its Gladstone refineries in Australia, according to S&P Global.
Rio had declared force majeure — a legal clause allowing a company not to fulfill contractual obligations because of circumstances outside its control — on third-party contracts in May after an incident limited its supplies of natural gas. That limitation has been lifted and operations are near normal, S&P said, citing market sources.
A Rio spokesperson was not immediately available for comment.
The halt added to a spate of supply disruptions from Jamaica to China that have sent alumina prices to record highs in recent weeks and squeezed the smelters that turn the intermediate product into aluminum. Rio produces alumina at its Yarwun refinery and at Queensland Alumina, a venture with Russia’s United Co. Rusal International PJSC.
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