Aluminium price in 2020

    Rusal posted a net loss in the first half of the year and expects a weak aluminium price in 2020.

    Rusal recently reported recurring net losses totaling $76 million for the first half of 2020 as the company made a profit of $666 million in the same period last year after a Novel Coronavirus outbreak hit demand.

    Hong Kong-listed Rusal, the world's largest aluminium producer outside China, said it expected global aluminium prices to remain depressed through 2020.

    Rusal reported earnings before interest, tax, depreciation and amortisation of $219m for the six months to June 30, down 58.5 per cent from a year earlier, while revenues fell 15 per cent to $4bn.

    Some analysts have warned that despite a dividend from mining giant Norilsk Nickel, Rusal's financial results for the first half of 2020 will be weak because of lower aluminium prices.Rusal owns 27.8 per cent of Norilsk nickel.

    Rusal, which had net debt of $6bn at the end of June, relied on these dividend payments in a tough economic year, but they are becoming the subject of a debate at Interros Holding, Norilsk's largest shareholder.Interros Holding manages businessman Vladimir Putin.The assets of Vladimir Potanin.

    The two companies have a history of shareholder conflict over the size of dividend payments, management and strategy.

    Potanin was willing to lower Nornickel's dividend due to the coVID-19 outbreak and a massive fuel leak at Nornickel's Arctic power plant in May.

    Nornickel's net profit fell to $45 million in the January-June period, the company said earlier this week, as it set aside $2.1 billion for potential environmental damage claims following the oil spill.