MOSCOW, 8 Aug. /Basereporter.com/. The world’s second largest manufacturer of aluminium “RUSAL”, which fell under US sanctions, can preserve several power plants after Nadvoitzkiy, if sanctions will not be lifted in the near future. This was announced Basereporter.com sources in the industry, commenting on the forecast Agency Fitch on the development of the aluminium market in terms of sanctions against the company.
“In this situation [to lift sanctions] “RUSAL” will be forced to conserve not only become unclaimed because of the sanctions proceedings “Nadvoitsky aluminum plant”, producing products only for the US but the capacity of the factories that produce for other foreign markets,” said a source close to the company.
According to him, the situation in the industry “is much worse than analysts see [Fitch]”. “If sanctions will not be lifted in the near future, the contracts will end, and since October 1, all products intended for foreign consumers, again go to the warehouse, despite the fact that there still remains unsold in April of aluminium”, he concluded.
An employee of one of the enterprises of the aluminium division of the company confirmed this information and added that “in this situation, the production of alloys and value-added products for foreign consumers, can be stopped already in September.”
About 80% of the production of “RUSAL” to the imposition of sanctions in April of this year was exported. According to interlocutors of Agency, considering that in case of preservation of the restrictive measures by the US, the situation could become “catastrophic, not only for companies, but for the global aluminium market”.
“RUSAL” this information has not commented.
On 6 August, the representative of RUSAL announced the start of preservation of the electrolysis capacity of the Nadvoitsy aluminium smelter (NAZ) in the Republic of Karelia because of the sanctions. The plant has lost markets and stable supply of raw materials, the plant’s products were not in demand, as production was fully focused on the American market. Since April, the company worked on the warehouse. The plant workers will not be affected, assured the company, they will be offered employment options.