Rusal stays away from fresh investments

Rusal, one of the world's largest aluminum producers, has said it will not continue its investment in China, the world's largest aluminum producer and consumer, as excess capacity in the beleaguered aluminum market will continue for another five years.

"We are not planning to either expand or invest in this market, because Chinese aluminum smelters made irrational decisions. I don't understand why they are building stockpiles even when the growth in supplies has already far outpaced demand," Oleg Deripaska, president of the Russian aluminum producer, told China Daily on Wednesday on the sidelines of an aluminum forum held in Qingdao, Shandong province.

"The continuing blind production from some Chinese aluminum smelters will worsen a global glut for the metal, driving down prices of aluminum products and squeezing profits for producers," said the senior executive.