Rusal 2025 Loss Highlights Cost Pressure on Russian Aluminium Producer

Rusal

Rusal 2025 loss results show how currency pressure, higher raw material costs, and disrupted sales routes continue to weigh on Russia’s aluminium sector. The Russian aluminium producer posted a net loss of $455 million in 2025 despite higher revenue and stronger aluminium selling prices.

Rusal 2025 loss was driven largely by $431 million in exchange rate losses as the strong rouble reduced earnings. The company also faced a 12.4% rise in production costs to $2,276/t, mainly because raw petroleum coke prices increased by 21.8%.

The Rusal 2025 loss also reflects the cost of operating under sanctions. Selling expenses rose by 25% as logistics costs increased and the company continued to adjust sales chains after western markets restricted exchange-traded Russian-origin aluminium.

Higher Revenue Failed to Offset Sanctions and Cost Inflation

Rusal’s revenue rose by 22.6% to $14.81 billion in 2025, supported by stronger aluminium buying prices. Average aluminium selling prices increased by 5.23% to $2,652/t, while alumina prices fell by 23.26% to $386/t.

However, stronger sales did not translate into profit recovery. Earnings before interest, tax, depreciation, and amortisation fell by 29.5% to $1.05 billion, showing that higher volumes and better aluminium prices were not enough to absorb cost inflation and foreign exchange losses.

Aluminium production declined by 1.85% to 3.92 million tonnes. However, sales rose by 16.35% to 4.49 million tonnes as Rusal sold down stocks that had built up in the previous year.

Upstream Growth Expands Alumina and Bauxite Supply Base

Rusal increased alumina output by 6.66% to 6.86 million tonnes in 2025. The increase was supported by its 30% stake in Chinese alumina producer Hebei Wenfeng New Materials and a 26% stake in India’s Pioneer Aluminium Industries.

The company also expanded bauxite production by 16.17% to 18.45 million tonnes. Growth came from capacity expansion projects at its Compagnie des Bauxites de Kindia and Dian-Dian mines in Guinea.

These upstream gains strengthen Rusal’s raw material position. Still, they do not fully remove the strategic pressure from sanctions, logistics disruption, currency volatility, and rising input costs.

The Metalnomist Commentary

Rusal’s results show that aluminium producers can face margin pressure even when headline prices improve. For Russian aluminium, the central challenge is no longer only production scale, but the cost of reaching markets under sanctions and fragmented trade routes.

Rusal Expands Thin Gauge Aluminium Foil Production Capacity

Rusal

Strategic Investments Drive Lightweight Packaging Growth

Rusal expands thin gauge aluminium foil production following a RUB 500 million ($6.24 million) investment at its Sayanal plant. The upgrade enhances the C-3/2 finishing foil mill and increases production capacity by 10–12%. This move is part of a broader strategy to meet rising global demand for lightweight and cost-effective packaging materials, particularly in the food sector.

In addition to the Sayanal investment, Rusal announced that its Ural foil plant will begin producing thin gauge foils for the first time. According to Rusal’s foil division head, Alexey Agafonov, the company plans continued investment at Sayanal to further scale thin foil output. The combined developments signal a significant expansion in Rusal’s ability to supply value-added aluminium products for packaging markets.

Thin gauge aluminium foil—such as Sayanal’s ultra-light 6-micron product—offers key advantages

it reduces the weight and cost of food packaging while maintaining performance. As the global packaging industry shifts toward sustainability and material efficiency, Rusal’s investments position it to capture growing demand in both domestic and international markets. Therefore, Rusal expands thin gauge aluminium foil production not just for capacity gains, but as a long-term strategic pivot toward high-growth end-use sectors.

The Metalnomist Commentary

Rusal’s expansion reflects a clear shift from commodity aluminium toward specialty, value-added applications. With the global packaging market increasingly focused on sustainability, Rusal’s thin gauge foil strategy strengthens its competitiveness and ESG relevance.

Rusal Ethiopia 500,000 t/yr aluminium smelter MoU targets import cuts and industrial growth

Rusal Ethiopia

The Rusal Ethiopia 500,000 t/yr aluminium smelter plan moved forward with a new MoU. Ethiopian Investment Holdings signed with Rusal to build a large smelter in Ethiopia. The Rusal Ethiopia 500,000 t/yr aluminium smelter project aims to support domestic industrial development.

The project targets 500,000 tonnes per year of aluminium output. It aims to meet rising Ethiopia aluminium demand and reduce import dependence. Meanwhile, the partners expect construction to take three to four years. They also formed a joint technical committee to manage preparations.

The first phase requires $1bn in funding. Debt providers may cover 70% of that total, based on stated interest. However, large smelters depend on stable power, logistics, and currency planning. Therefore, execution discipline will determine timelines and cost outcomes.

Joint technical committee sets early milestones for a complex build

The joint committee will drive feasibility work and project readiness. It will likely define the site, power plan, and construction sequencing. Meanwhile, a 500,000 t/yr facility needs reliable baseload electricity. Therefore, Ethiopia’s power and grid roadmap will become a key risk lever.

The project also needs strong downstream pull from local industry. It should link output to domestic fabrication and export channels. However, smelter economics can swing quickly with energy and alumina terms. As a result, the committee’s early contracting choices will matter.

Smelter financing signals investor appetite and policy direction

The financing outline highlights sovereign wealth fund investment leadership. Ethiopian Investment Holdings framed the deal as a strategy to attract global investors. Meanwhile, the Rusal Ethiopia 500,000 t/yr aluminium smelter plan could anchor new industrial clusters.

The debt-heavy structure can accelerate delivery if terms stay competitive. However, lenders will demand clear offtake logic and sovereign risk comfort. Therefore, policy stability and bankable power contracts will shape final close.

The Metalnomist Commentary

Big smelters succeed when power, financing, and offtake align early. Meanwhile, import substitution will only stick if local fabrication scales. Therefore, the Rusal Ethiopia 500,000 t/yr aluminium smelter plan should prioritize downstream anchors and grid resilience.

Rusal Launches Scandium Oxide Pilot Plant to Boost Russia’s Rare Earth Capabilities

Rusal

New Facility at Bogoslovsky Smelter to Produce Scandium from Red Mud, Potentially Expanding Global Supply by 75%

Rusal Sets Up Pilot Scandium Plant at Krasnoturinsk Smelter

Russian aluminium giant Rusal has announced the launch of a pilot scandium oxide facility at its Bogoslovsky aluminium smelter in Krasnoturinsk, Russia, aiming to produce 1.5 tonnes per year of scandium oxide. Given the global scandium output of just 20–25 t/yr, this project marks a major addition to global capacity.

Rusal plans to extract scandium from red mud, a waste by-product of alumina refining, using proprietary technology developed at its Krasnoyarsk Engineering and Technology Center. This contrasts with conventional scandium sources, which are typically by-products of titanium dioxide or uranium production.

If scaled to full commercial operation, the plant could eventually produce up to 19 t/yr of scandium oxide, placing Rusal among the world’s top producers of this high-value rare earth element.

Scandium Alloy Demand Rising Across Aerospace and 3D Printing Sectors

Scandium oxide is used to create aluminium-scandium alloys for ultra-lightweight structural components in ships, aircraft, railcars, and additive manufacturing (3D printing). These alloys enhance strength while reducing weight—making them highly desirable in aerospace and defense applications.

Rusal’s investment in the pilot project totals 500 million roubles ($5.73 million), with commissioning expected by year-end 2025. The project also aligns with broader geopolitical trends, including Russia’s renewed push to increase rare earth production. President Vladimir Putin has recently emphasized rare earths as a strategic priority for the country.

Russia Eyes Rare Earth Deals Despite Sanctions Landscape

On 25 February, Russia signaled its willingness to cooperate with the U.S. on developing rare earth assets, despite ongoing geopolitical tensions. This scandium oxide initiative positions Rusal—and Russia more broadly—as a significant player in non-Chinese rare earth supply chains, especially as nations look to diversify sources of strategic minerals.

Rusal's 2024 Earnings Surge Despite Sanctions and Market Headwinds

Rusal

Aluminium giant increases EBITDA by 90% amid sanctions, falling costs, and domestic market pivot

Russia’s top aluminium producer Rusal reported a dramatic earnings increase in 2024, despite facing international sanctions and weak global demand. The company’s EBITDA soared to $1.49 billion, a 90% jump year-on-year, thanks to lower production costs and a strategic pivot to domestic markets.

Rusal’s revenues dipped slightly by 1.1% to $12.08 billion, but net profits surged to $803 million, up from $282 million in 2023. The producer boosted aluminium output to 3.99 million tonnes, up 3.7%, and alumina production by 25% to 6.43 million tonnes.

Notably, Rusal acquired a 30% stake in Hebei Wenfeng New Materials in late 2023, securing access to 1.4 million tonnes per year of alumina in China’s Hebei province. The company also lifted bauxite output by 18.8% to 15.89 million tonnes.

Sanctions Drive Market Realignment

In April 2024, the US and UK banned exchange-traded Russian aluminium, copper, and nickel, barring imports and services tied to these metals. The London Metal Exchange (LME) subsequently banned Russian-origin metals from its warehouses, intensifying pressure on Rusal.

Despite these barriers, Rusal successfully reorganized its export channels and expanded domestic sales, minimizing disruption. The company also lowered its overall cost of sales by 11.3%, aided by falling raw material and energy costs.

Aluminium prices rose 3.3% on average in 2024, while alumina prices surged nearly 47% due to global supply constraints.

Outlook Remains Cautious

Rusal noted that the global aluminium industry remained under pressure from volatile input prices, sluggish demand, and high interest rates. Yet, by shifting to local markets and improving operational efficiency, the company weathered macroeconomic turbulence and reinforced its production base.

Rusal Begins Commercial Production of Low-Carbon Foundry Alloys

Rusal

Post-Consumer Scrap Boosts Low-Carbon Aluminium Output

Russian aluminium producer Rusal has commenced commercial production of low-carbon foundry alloys at its Irkutsk aluminium smelter. The new production line integrates post-consumer scrap into Rusal’s Allow brand, which is manufactured using renewable hydropower. This move strengthens the company’s position in the growing low-carbon aluminium market.

Rusal began trial production in early 2023 with scrap accounting for around 20% of feedstock. The proportion has now increased to approximately 40% for commercial output. According to the company, the process involves adding consumer scrap to molten low-carbon aluminium, ensuring both emissions reduction and efficient resource use.

Targeting the Automotive Industry’s Sustainability Demands

The adoption of low-carbon foundry alloys is driven by rising demand from industries prioritizing sustainability, particularly automotive manufacturing. Rusal aims to supply customers seeking environmentally responsible aluminium units for casting components. By combining recycled materials with hydropower-based aluminium production, the company aligns with global carbon reduction goals and offers a competitive advantage in markets with strict sustainability standards.

The Metalnomist Commentary

Rusal’s integration of post-consumer scrap into low-carbon aluminium reflects a critical industry trend toward circular production models. The ability to meet both environmental targets and performance standards will be key in capturing market share in sectors like automotive, where sustainability is becoming a procurement requirement. This approach also demonstrates how aluminium producers can reduce emissions without compromising product quality.

Rusal Shifts Focus to Asia as Regional Sales Surge in 2024

Rusal

In the first half of 2024, Russian aluminum giant Rusal continued to shift its business focus from Europe to Asia, with the region now accounting for over 40% of its total revenue. This strategic realignment comes in response to ongoing geopolitical challenges and restrictions on Russian metal in Europe and the U.S. following the Ukraine conflict.

Strong Sales Growth in Asia, Decline in Europe

Rusal's revenue for January to June 2024 dropped by 4.2% year-on-year to $5.695 billion, mainly due to lower aluminum prices and premiums. However, sales to Asia, particularly China, increased significantly, rising by 19.9% compared to the first half of 2023, reaching $2.37 billion. In contrast, sales to Europe plummeted by 32.7% to $1.26 billion during the same period. As a result, Asia accounted for 41.6% of Rusal’s revenue in the first half of 2024, up from 33% the previous year.

Rusal also bolstered its raw material supply chain by acquiring a 30% stake in Chinese alumina producer Hebei Wenfeng New Materials in October 2023, contributing to a nearly 19% increase in alumina output. Aluminum production rose slightly by 2.3%, while net profits surged by 41.6%, driven by a 22% reduction in non-alumina raw material costs.

Nigeria Intensifies Efforts to Restart Al Smelter

Alscon

Nigeria has launched a "significant initiative" to revive the Aluminium Smelting Company of Nigeria (Alscon). This move aims to boost the nation's industrial base and attract foreign investment.

Government Steps Up Revival Efforts

Steel development minister Prince Shuaibu Abubakar Audu visited Alscon to assess its operational readiness. He will submit a report to President Bola Tinubu on restarting the plant. Alscon's revival is seen as crucial for creating a robust industrial base. Alscon is 85pc owned by Rusal, with the remainder held by the state. The smelter halted operations in 2013 due to unreliable gas supply. Rusal plans to invest $500mn in the revival.

Key Agreements and Economic Goals

Furthermore, the government facilitated an agreement between Alscon investor BFI and China National Chemical Engineering International to restart a crucial gas processing plant. Vice-president Kashim Shettima hinted at Alscon's restart in July 2023. "For the president to achieve the $1 trillion economy for the country by 2030, all critical assets have to come back on line," said Shuaibu Audu. Alscon has a nameplate capacity of 193,000 t/yr.

Challenging Market Conditions Limit Low-Carbon Aluminium Premium

Aluminium

Demand for low-carbon aluminium in Europe has grown steadily in recent years, with consumers willing to pay a premium for sustainable products like Hydro's Reduxa, Alcoa's EcoLum, and Rusal's Allow, which have a carbon footprint of 4t or less per tonne of aluminium. Despite this, tough market conditions have capped how much more buyers are willing to pay over regional premiums.

During the summer, some low-carbon aluminium was offered with no premium over standard aluminium, as overall demand in the aluminium sector remained weak. The upcharge for low-carbon aluminium continues to hover at lower levels, a result of sluggish demand across various industries, including automotive, construction, and packaging. This is compounded by the fact that the European premium for standard aluminium remains relatively high, driven by tight global supply and a shift away from Russian metal.

While the current market dynamics are challenging, the long-term outlook for low-carbon aluminium is optimistic. In recent years, manufacturers have increasingly prioritized sustainability, with life-cycle assessments and specific carbon footprint goals driving demand in industries like automotive, packaging, and construction. The introduction of market regulations, such as the EU’s carbon border adjustment mechanism, is expected to further accelerate demand for low-carbon aluminium, pushing companies to emphasize sustainability even more.

However, a liquid, widely available spot market for low-carbon aluminium is still far off. Most of the material is supplied to select customers through contracts, though some is sold on the broader market during slower periods, such as the summer months.

To secure its place in the broader market, low-carbon aluminium will need to solidify its definition and standardize how producers calculate carbon footprints, taking into account the raw materials they use. Investments in new technologies, such as inert anodes and carbon capture projects, are expected to lower emissions further, ensuring that low-carbon aluminium continues to evolve and meet future sustainability standards.

Aughinish Alumina Sanctions Scrutiny Raises EU Aluminium Supply Risk

Ireland, Alumina

Aughinish Alumina sanctions discussions are intensifying as Ireland reviews the future of Rusal’s Limerick refinery amid claims linking some exports to Russia’s defence industry. Dublin says it remains open to different scenarios but is warning that any action must account for the plant’s importance to Europe’s aluminium supply chain.

Aughinish Alumina sanctions would carry unusually large industrial consequences because the refinery is Europe’s largest alumina operation. Alumina is the intermediate feedstock used by aluminium smelters to produce primary metal, making refinery availability critical to regional production.

Aughinish Alumina sanctions have not yet been formally proposed by the EU. Irish prime minister Micheal Martin said there was a reason alumina had remained outside previous sanctions packages and called for a full assessment of the European consequences before action is taken.

The debate highlights the difficulty of separating Russian-linked assets from strategically important European industrial infrastructure without creating additional dependence on imported raw materials.

Aughinish Closure or Restrictions Could Tighten European Alumina Supply

Any restriction affecting Aughinish would have implications well beyond Ireland. European aluminium smelters require reliable alumina supply, and losing a major regional refinery could increase dependence on overseas producers.

This would expose European smelters to additional freight costs, logistics risk and international alumina price volatility.

The policy challenge is particularly difficult because Europe is already trying to preserve domestic aluminium capacity while dealing with high power prices and global competition.

Restricting alumina supply could undermine those same smelters by raising raw material costs even if the policy objective is to reduce Russian economic exposure.

Ireland is therefore conducting a deeper review before determining its position. The government wants to establish whether material from the plant is ultimately supporting sanctioned or defence-related Russian activity.

The issue also demonstrates how ownership and physical supply can create different strategic questions. A refinery may be Russian-owned while simultaneously functioning as important European industrial infrastructure.

EU Focus Shifts Toward Metals and Sanctions Circumvention

The wider sanctions debate is increasingly moving toward metals, alloys and industrial inputs connected to aerospace and defence.

The European Commission’s proposed 21st sanctions package includes additional export restrictions on materials and technologies used by Russia’s military industry, as well as new import bans covering selected metals, ores and automotive products.

European aluminium producers are also calling attention to indirect imports of Russian metal through third countries.

This creates a second policy challenge. Restricting direct Russian aluminium while allowing Russian-origin metal to enter Europe after processing elsewhere can weaken sanctions effectiveness and disadvantage European producers.

Greater origin traceability and stronger anti-circumvention measures could therefore become as important as additional direct sanctions.

For Europe, the long-term objective will be reducing dependence on Russian supply without damaging domestic refining and smelting capacity. That requires diversification across bauxite, alumina, primary aluminium and downstream products rather than action at only one stage of the chain.

The Metalnomist Commentary

Aughinish illustrates the conflict between sanctions policy and industrial security. Europe can reduce Russian exposure, but weakening its largest alumina refinery without replacement supply could simply exchange one strategic dependency for another.