TALCO Q1 aluminium output dwindles on metal's low price

Reuters reported that Tajikistan Aluminium Company, Central Asia's largest aluminium smelter cut output by 39.5% in annual terms to 36,000 tonnes in January to March.

The Economy and Trade Ministry said that the fall in output in the first quarter is largely in line with TALCO's pessimistic outlook published in February, which forecast aluminium production to shrink by 30.7% to 150,000 tonnes this year.

The reason behind falling aluminium output is a decline in world aluminium prices, which in turn does not allow the smelter to increase production because the low price for the metal makes this unprofitable. Hit by low aluminium prices, TALCO was forced to reduce output by 20.6% to 216,369 tonnes in 2013.

Lower output has made redundant 20% of the smelter's personnel, which now stands at 8,300. Aluminium is a major export earner in Tajikistan, the poorest of the former Soviet republics. Its population of eight million includes more than one million migrants working abroad, mainly in Russia.

Aluminium exports, which account for around a third of all Tajik exports, tumbled by 41.5% YoY to USD 67.9 million in the Q1 of this year declining for 32 consecutive month.

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