Russia’s Rusal cuts its capacity

Russian group Rusal, the world’s largest aluminium producer, said yesterday that it would cut capacity three per cent by the year-end and was taking a charge on its investment in Africa, as it grapples with weak prices and rising power costs. Rusal, which produces nine per cent of the world’s primary aluminium, has been hurt by persistently weak prices for the metal used in drink cans, car parts, aircraft and iPads. Slack demand and overproduction have pushed prices close to two-year lows. It reported a net second-quarter loss of $37m (£23.4m) yesterday, including a $167m impairment related to its Friguia alumina refinery in Guinea.