Rusal sees steady 2011 aluminium output growth
Hong Kong, February 14, 2011
Russia-based Rusal, the world's largest aluminium producer, said on Monday that it sees steady output growth in 2011, driven by strong demand from China and a rebound in North America.
Hong Kong and Paris-listed Rusal said aluminium production was expected to grow 2 per cent in 2011, roughly steady with last year's 3 per cent rise to 4.08 million tonnes, with higher output seen at its Siberian smelters.
"Growth in aluminium demand in regions other than China is expected to be strong, indicating that Western markets appear to have rebounded positively from the financial crisis," Rusal said in a statement to the Hong Kong stock exchange.
Global demand for aluminium, used in everything from soft drink cans to building construction, would increase 8 per cent to 43.8 million tonnes in 2011, with prices expected to remain above $2,500 per tonne, said Rusal, which accounted for 10 per cent of primary aluminium production in 2009.
The increase with higher output seen at its Siberian smelters was roughly steady with last year's 3 per cent rise to 4.08 million tonnes.
"Production for 2010 was generally in line with our forecast but the guidance for 2011 was a little lower than we are expecting," said Alexander Latzer, an analyst at Daiwa Securities Markets. He expect Rusal's aluminium output to rise 5 per cent this year.
Expected higher output at Rusal's Siberian smelters and the planned restart of the Windalco-Kirkvine Works Plant from July, would help lift production this year, it said.
Rusal also said it would increase production of alumina, a key material in aluminium, by 8 per cent this year after output also rose 8 per cent to 7.8 million tonnes in 2010.
In the fourth quarter, Rusal produced 1.05 million tonnes of aluminium and 2.08 million tonnes of alumina 2010, based on Reuters calculations. – Reuters