Latest news with #Rusal
Reuters
26-05-2025
- Business
- Reuters
Russia's cooling economy facing 'hypothermia' risks, minister warns
MOSCOW, May 26 (Reuters) - Russian Economy Minister Maxim Reshetnikov on Monday urged the central bank to take slowing inflation into account when it meets to set interest rates next week, warning that Russia's cooling economy is showing signs of "hypothermia". Grappling with stubbornly quickening inflation, Russia's central bank has kept its key interest rate at 21% since October, tight monetary policy that has stifled investment just as the economic impact of soaring military spending starts to ease. President Vladimir Putin In March urged his economic officials not to freeze the Russian economy as if it were in a "cryotherapy chamber" with high borrowing costs, which many analysts interpreted as a call to start an easing cycle. Reshetnikov, speaking in the State Duma, Russia's lower house of parliament, said that inflation in recent weeks had been in the 3-4% range when recalculated in annual terms. "We expect that May data will consolidate this trend and we of course expect that the central bank will take duly take this into account when taking decisions because we also see risks of economic hypothermia in the current regime," Reshetnikov said. The ministry forecasts annual inflation for 2025 at 7.6%, an estimate that Reshetnikov described as "realistic". Major Russian exporters including Rusal and Gazpromneft have cut the planned volume of commodities like metal and oil products they send by rail, a Russian Railways document seen by Reuters showed last week, demonstrating the real-world impact of subdued demand as the country's economy slows. The central bank's next rate-setting meeting is scheduled for June 6.
Yahoo
23-05-2025
- Business
- Yahoo
Exclusive-Russia's major exporters cut rail cargo volumes as economy slows, document shows
By Gleb Stolyarov (Reuters) -Major Russian exporters including Rusal and Gazpromneft have cut the planned volume of commodities like metal and oil products they send by rail, a Russian Railways document seen by Reuters showed, the latest sign of subdued demand as the country's war economy slows. The state-owned rail monopoly intends to reduce 2025 spending by an additional 32.5 billion roubles ($408 million), or around 3.5%, to 858.4 billion roubles, due to the revised cargo forecast, according to the document dated March 20. It had already planned to spend 40% less on investment this year than in 2024 in the face of soaring interest payment costs. Russian Railways declined to comment. Its cargo volumes, which hit a 15-year low in 2024, are a useful gauge of the manufacturing health of Russia's export-driven economy. The document Reuters reviewed anticipates Russian Railways will transport 36.7 million metric tons less than the 1.24 billion tons initially projected for 2025. It named a dozen major companies contributing to reduced rail shipment volumes, including aluminium giant Rusal and steelmakers Severstal and MMK. Although total cargo volumes this year are still expected to be slightly higher than the 1.18 billion tons in 2024, they have fallen 6.8% year-on-year in the January to April period, according to data on its website. In the document, a presentation to Russian Railways' board from First Deputy CEO Vadim Mikhaylov, the company said its investment plan can be adjusted in exceptional circumstances and listed five main reasons to reduce spending, blaming factors outside its control. Tight monetary policy, with the Bank of Russia's key interest rate at 21% since October, has slowed the pace of construction, the document said. High rates have also led steel producers to reduce loading volumes, it said, naming Severstal, MMK, TMK, NLMK and Evraz among companies contributing to reduced cargo volumes. TMK declined to comment. Evraz, MMK, NLMK and Severstal did not immediately respond to requests for comment. Russia's iron and steel industry, which contributes nearly 5% to the country's GDP, has seen export revenues plunge since losing access to high-margin markets because of Western sanctions, according to a report by Moscow-based consultancy Yakov and Partners. Steel production, exports and local demand dropped in 2024, according to the World Steel Association. Production has continued to drop this year, according to analytical firm Chermet Corporation. SLOWING ECONOMY Russian Railways highlighted in the document reduced demand in other sectors, such as from aluminium giant Rusal. Rusal said it was sticking to plans announced in November, without giving further details. Those plans include cutting annual aluminium output by 250,000 tons due to rising alumina prices. The document named increased sanctions on metal, forestry and oil companies - Gazpromneft, Surgutneftegaz and Tatneft - as a negative factor. Those three companies did not respond to requests for comment. Reduced exports of wood, fertiliser, metals and oil products to China have also hurt cargo volumes, the document showed. Trade turnover between Russia and China is down 7.5% since the start of the year. The document also blamed "the interference of third parties mainly in relation to oil refineries", a tacit reference to Ukrainian drone strikes on Russian energy facilities. ($1 = 79.6705 roubles) Sign in to access your portfolio
Reuters
23-05-2025
- Business
- Reuters
Exclusive: Russia's major exporters cut rail cargo volumes as economy slows, document shows
May 23 (Reuters) - Major Russian exporters including Rusal and Gazpromneft have cut the planned volume of commodities like metal and oil products they send by rail, a Russian Railways document seen by Reuters showed, the latest sign of subdued demand as the country's war economy slows. The state-owned rail monopoly intends to reduce 2025 spending by an additional 32.5 billion roubles ($408 million), or around 3.5%, to 858.4 billion roubles, due to the revised cargo forecast, according to the document dated March 20. It had already planned to spend 40% less on investment this year than in 2024 in the face of soaring interest payment costs. Russian Railways declined to comment. Its cargo volumes, which hit a 15-year low in 2024, are a useful gauge of the manufacturing health of Russia's export-driven economy. The document Reuters reviewed anticipates Russian Railways will transport 36.7 million metric tons less than the 1.24 billion tons initially projected for 2025. It named a dozen major companies contributing to reduced rail shipment volumes, including aluminium giant Rusal ( opens new tab and steelmakers Severstal ( opens new tab and MMK. Although total cargo volumes this year are still expected to be slightly higher than the 1.18 billion tons in 2024, they have fallen 6.8% year-on-year in the January to April period, according to data on its website. In the document, a presentation to Russian Railways' board from First Deputy CEO Vadim Mikhaylov, the company said its investment plan can be adjusted in exceptional circumstances and listed five main reasons to reduce spending, blaming factors outside its control. Tight monetary policy, with the Bank of Russia's key interest rate at 21% since October, has slowed the pace of construction, the document said. High rates have also led steel producers to reduce loading volumes, it said, naming Severstal, MMK, TMK ( opens new tab, NLMK and Evraz (EVRE.L), opens new tab among companies contributing to reduced cargo volumes. TMK declined to comment. Evraz, MMK, NLMK and Severstal did not immediately respond to requests for comment. Russia's iron and steel industry, which contributes nearly 5% to the country's GDP, has seen export revenues plunge since losing access to high-margin markets because of Western sanctions, according to a report by Moscow-based consultancy Yakov and Partners. Steel production, exports and local demand dropped in 2024, according to the World Steel Association. Production has continued to drop this year, according to analytical firm Chermet Corporation. Russian Railways highlighted in the document reduced demand in other sectors, such as from aluminium giant Rusal. Rusal said it was sticking to plans announced in November, without giving further details. Those plans include cutting annual aluminium output by 250,000 tons due to rising alumina prices. The document named increased sanctions on metal, forestry and oil companies - Gazpromneft ( opens new tab, Surgutneftegaz ( opens new tab and Tatneft ( opens new tab - as a negative factor. Those three companies did not respond to requests for comment. Reduced exports of wood, fertiliser, metals and oil products to China have also hurt cargo volumes, the document showed. Trade turnover between Russia and China is down 7.5% since the start of the year. The document also blamed "the interference of third parties mainly in relation to oil refineries", a tacit reference to Ukrainian drone strikes on Russian energy facilities. ($1 = 79.6705 roubles)
Yahoo
23-05-2025
- Business
- Yahoo
Exclusive-Russia's major exporters cut rail cargo volumes as economy slows, document shows
By Gleb Stolyarov (Reuters) -Major Russian exporters including Rusal and Gazpromneft have cut the planned volume of commodities like metal and oil products they send by rail, a Russian Railways document seen by Reuters showed, the latest sign of subdued demand as the country's war economy slows. The state-owned rail monopoly intends to reduce 2025 spending by an additional 32.5 billion roubles ($408 million), or around 3.5%, to 858.4 billion roubles, due to the revised cargo forecast, according to the document dated March 20. It had already planned to spend 40% less on investment this year than in 2024 in the face of soaring interest payment costs. Russian Railways declined to comment. Its cargo volumes, which hit a 15-year low in 2024, are a useful gauge of the manufacturing health of Russia's export-driven economy. The document Reuters reviewed anticipates Russian Railways will transport 36.7 million metric tons less than the 1.24 billion tons initially projected for 2025. It named a dozen major companies contributing to reduced rail shipment volumes, including aluminium giant Rusal and steelmakers Severstal and MMK. Although total cargo volumes this year are still expected to be slightly higher than the 1.18 billion tons in 2024, they have fallen 6.8% year-on-year in the January to April period, according to data on its website. In the document, a presentation to Russian Railways' board from First Deputy CEO Vadim Mikhaylov, the company said its investment plan can be adjusted in exceptional circumstances and listed five main reasons to reduce spending, blaming factors outside its control. Tight monetary policy, with the Bank of Russia's key interest rate at 21% since October, has slowed the pace of construction, the document said. High rates have also led steel producers to reduce loading volumes, it said, naming Severstal, MMK, TMK, NLMK and Evraz among companies contributing to reduced cargo volumes. TMK declined to comment. Evraz, MMK, NLMK and Severstal did not immediately respond to requests for comment. Russia's iron and steel industry, which contributes nearly 5% to the country's GDP, has seen export revenues plunge since losing access to high-margin markets because of Western sanctions, according to a report by Moscow-based consultancy Yakov and Partners. Steel production, exports and local demand dropped in 2024, according to the World Steel Association. Production has continued to drop this year, according to analytical firm Chermet Corporation. SLOWING ECONOMY Russian Railways highlighted in the document reduced demand in other sectors, such as from aluminium giant Rusal. Rusal said it was sticking to plans announced in November, without giving further details. Those plans include cutting annual aluminium output by 250,000 tons due to rising alumina prices. The document named increased sanctions on metal, forestry and oil companies - Gazpromneft, Surgutneftegaz and Tatneft - as a negative factor. Those three companies did not respond to requests for comment. Reduced exports of wood, fertiliser, metals and oil products to China have also hurt cargo volumes, the document showed. Trade turnover between Russia and China is down 7.5% since the start of the year. The document also blamed "the interference of third parties mainly in relation to oil refineries", a tacit reference to Ukrainian drone strikes on Russian energy facilities. ($1 = 79.6705 roubles)
Yahoo
23-04-2025
- Business
- Yahoo
China's alumina exports hit near-record levels
China's alumina exports surged to their second-highest level on record in March, with overseas sales of aluminium raw material more than doubling from the previous year to 300,000 tonnes (t), according to the latest customs data, reported Bloomberg. This increase in exports is expected to continue for several months due to an oversupply of alumina. The alumina market in China has experienced fluctuations recently. Prices soared last year, only to plummet as new production capacity came online, leading to an oversupply that prompted the industry to look for buyers abroad. This contrasts with other Chinese metal exports such as steel and aluminium, which have faced international scrutiny after saturating global markets. Alumina sales, however, have been limited to a few primary buyers. Russia, grappling with a feedstock shortage since the Ukraine invasion, was the largest recipient of China's alumina exports last month, accounting for 48%. Rusal, Russia's leading aluminium producer, secured a deal in 2023 with a Chinese plant to address this shortfall. Indonesia and the United Arab Emirates (UAE) were also significant buyers, taking 19% and 23% of the exports, respectively. The Chinese Government is implementing measures to curb over-investment, including prohibiting new plants in areas with severe pollution to address the surplus. This directive is in line with policies aimed at other overcapacity-stricken industries such as copper smelting. The China Nonferrous Metals Industry Association has recently criticised the alumina sector's haphazard expansion, highlighting the approximately 15 million tonnes (mt) of capacity under construction and over 20mt in the planning stage, which would add significantly to China's existing 107mt of annual capacity. In a separate development, the Chinese Government has advised South Korean companies against exporting products containing Chinese rare earth minerals to US defence companies, reported Reuters, citing government and company sources. The government has cautioned Korean companies that they could face sanctions if they do not comply with the export restrictions. China, which produces around 90% of the world's rare earths, has recently imposed export restrictions on these elements in response to US tariffs. Exporters now require licences from the Ministry of Commerce, a process that can be lengthy and opaque. The US has some stockpiles of rare earths but not enough to sustain defence contractors indefinitely. South Korea has stated it has more than six months' worth of stockpiles for some of the restricted rare earths. South Korean officials are preparing for tariff discussions with their US counterparts in Washington, while China issued a warning to countries against broader economic agreements with the US that could be detrimental to its interests. "China's alumina exports hit near-record levels" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
