Rusal (0486.HK) lost US$118 million in the third quarter ending September (profit of US$432 million in the same period last year). Sales volume of primary aluminum and alloys increased slightly during the period, but the average sales price fell by 20.8% year-on-year. Citi believes that since Rusal's production facilities in West Guinea are discontinued, there is a need to increase procurement of alumina from abroad to raise costs. However, the revaluation of its Norilsk Nickel subsidiary can more than offset these factors. Therefore, it maintains a neutral rating for Rusal, and the target price was raised by 6% to HK$5.18.