Russian aluminium giant Rusal said Thursday net profit fell 70 percent in the first half of 2016, as weaknesses in global commodities markets keeps prices depressed.

The cost of aluminium sank to six-year lows below $1,500 a ton in 2015 as a growth slowdown and overcapacity in key market China hammered demand. Prices have only recovered marginally, sitting just below $1,700 now and well off a peak above $2,300 seen in 2012.

The European Union Chamber of Commerce warned in February that the effect of China's huge stockpiles was wreaking "far reaching" damage on the global economy.

With this backdrop, Rusal posted a net profit of $261 million for the first six months of this year, compared with $879 million in the same period in 2015, it said in a statement to the Hong Kong stock exchange Thursday.

Revenue fell 17.9 percent to $3.89 billion.

"Throughout the first half of the year, the aluminium industry remained under strong pressure as the weak commodity environment continued," chief executive officer Vladislav Soloviev said in the statement.

Soloviev described a slight recovery in the price of the metal in the second quarter of the year, helped by strong demand and tightening of China's supply, had contributed to improved numbers in the period.

Profit for the second quarter rose 7.1 percent from the previous three months to $135 million. However, that is still down 56 percent year on year.

Shares in the Russian firm ended the morning 2.01 percent lower at HK$2.92 in Hong Kong Thursday.

China Hongqiao Group surpassed Rusal as the world's biggest producer of aluminium in the first half of last year.

at/dan

UNITED COMPANY RUSAL