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. Last Updated: 07/27/2016

Russia Sets Aluminum Output Cut

Russia, which has already cut over 100,000 tons of aluminum output, is continuing preparations for further cuts, according to a senior official with its aluminum producers' group Aluminy.


"We have started preparations for further output cuts. Once this technological process has been started, it's not that simple to reverse it," Sergei Znamensky, head of Aluminy's foreign relations department, said in an interview Thursday.


Vladimir Kalchenko, Aluminy's first deputy general director, said earlier this week Russia had cut output by over 100,000 tons and was taking "a forced pause" in implementing further cuts because it was not satisfied with other producers' compliance with an international accord.


French producer Pechiney said Thursday it would cut its annual aluminum output by 120,000 tons a year planned for a minimum 18 months starting April 1994. It said the cuts involved all of the group's world capacity.


Znamensky said the Pechiney cuts "changed the whole matter" to a certain extent and "lessened our disappointment (with global cuts)."


He also expected "big progress" at talks between world aluminum producers in Ottawa from Feb. 28 to March 1.


The talks are aimed at finalizing an agreement on global aluminum output cuts proposed last month in Brussels.


"I expect big progress at the talks. I think a mechanism for monitoring global aluminum output cuts can be worked out in Ottawa," Znamensky said.


Znamensky suggested that the London-based International Primary Aluminum Institute, IPAI, could monitor the cuts.


Asked whether Russia planned to be incorporated into the IPAI reporting system, Znamensky said: "We are ready to join the system, but we still have some differences with the IPAI."


Znamensky declined to say what the differences were, but added: "It will not take much time to settle them, because the IPAI management is positive about eliminating them."