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Stagnation in the commodities market is forcing aluminum giant UC RusAl to cut costs by reorganizing the company's plant in Volkhov and possibly freezing production at four other facilities, Vedomosti reported Wednesday.

United Co Rusal will convert its loss-making Russian aluminium smelters to the production of vehicle components as well as rolled and cable products, it said on Monday September 30

UC Rusal has launched its red mud pilot plant at its Urals aluminium smelter (UAZ) in Russia. It will test the viability of producing scandium concentrate from the alumina refining waste product.

“While the USA, China and the rest of Asia are expected to drive aluminium demand in 2013, our view on the European consumption of aluminium remains negative for 2013,” Rusal said.

UC Rusal is marketing Russia as an alternative and viable destination for new smelters amid an inevitable restructuring of the aluminium industry due to low prices and inflated production costs, according to a senior company executive.

UC Rusal will produce 6000-series aluminium alloy for the first time, following a $23 million investment at its Sayanogorsk aluminium smelter, the company said on Tuesday May 27.

Cables made from the new wire rod have much better characteristics.  Their durability and resistance to temperature is about 50% higher than normal ones have. Regarding the significant deterioration of the Russian power grids, new cables will benefit not only metals and cables producers but also grid and power companies.  RUSAL's product is also significantly cheaper than its US or European counterparts.  We expect this product will be able to partially supersede the expensive copper cables and broaden aluminium application limits”, commented UC RUSAL’s Technical Director Viktor Mann.

“We have constantly confirmed that China is a priority market for Rusal’s development,” first deputy ceo Vladislav Soloviev said in a statement. “The signing of the agreement with the Russian Ministry of Economic Development aims to reinforce our joint efforts to increase the presence of Russia in the region.”...

RUSAL's clear advantages in aluminium industry technologies and hydro power resources are evident. Both parties will work closely together on various levels in the aluminium sector by complementing each other's advantages, thereby contributing to the sound development of the global aluminium industry.'

The technology to enable the production of cable alloys based on aluminium with an increased resistance to temperature and, as a result, with higher power transmission capacity, was developed jointly with scientists from Siberian Federal University, Ufa State Aviation Technical University and the Chemistry Faculty of Moscow State University. The initial trials were carried out at Tomsk cable plant.

The world's biggest aluminium producer expects demand growth to accelerate amid "positive signals of returning confidence across all key sectors and markets”

Almost 25m tonnes of the liquid has already been deposited on the land bank adjacent since the plant’s opening, leading to concern from farmers and other locals.

Making one tonne of aluminium requires about two tonnes of alumina. The production of two tonnes of alumina creates two to four tonnes of red mud or bauxite residue, which is presently regarded as waste from the Bayer process - but it is potentially a valuable resource. The production of 200,000,000 tonnes of red mud every year has a serious effect on the environment. For now, technology enables us to store the residue harmlessly, but this does not remove the problem.