Interfax cited Mr Oleg Deripaska aluminum giant CEO as saying that UC Rusal might reduce output if it stops capacity for upgrades.

He said that "When we talk about reducing volumes, we have two smelters where we plan extensive modernization. In other words, [any drop] would be related to stoppages. Anything else will be associated with how existing capacity is run. That is with the extent of capital repairs that we carry out."

He added that "We're looking at this issue [of reducing capacity] in two steps the first 5% and the second also 5%.We're not talking about shutting down, but reducing capacity."

Rusal has said any cuts would take place primarily at smelters that are running at a loss due to high electricity charges for the West aluminum division, which Rusal is re-profiling for the production of alloys and other value-added products.

Source - Interfax

(www.steelguru.com)