United Company Rusal is seeking to renegotiate alumina sales contracts for 2009 and 2010 with smelters and traders, market sources say.

The Russian aluminium producer has not yet delivered on some contracts from last year and there are concerns about the delivery of some material on contract for this year. The total value of the alumina involved is some $2.5 billion at an alumina price of $340 per tonne.

"The issue is the drop [in alumina output] from 2008 and 2009. Four million tonnes have been lost. The big issue is Rusal is overcommitted since it stopped its refineries in Jamaica and Eurallumina. They have become short and need to cover their existing commitments which they are reluctant to do."

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