Rusal reported $ 209 million in losses during the first six months of the year, down markedly from the $ 439 million suffered in H1 2013 thanks to rising aluminum prices in Q2 and cost cuts, it said in its interim report filed to the Hong Kong Exchanges and Clearing Limited.
Three-month aluminum on the London Metal Exchange has been on an upward trajectory after tumbling to a four-year low of $ 1,642 per tonne in February 2014, rising above $ 2,000 per tonne at the end of Q2, CEO Oleg Deripaska noted in the report.
Besides, aluminum costs dropped 9.8% year-on-year to $ 1,752 per tonne in H1 2014, and the average power tariff also fell 16.6% from a year ago to US cents 3.44 per Kwh, according to the report.
Rusal’s revenues dropped 15.7% from a year earlier to $ 4.38 billion in H1, hit by falling sales and aluminum prices. Aluminum sales volumes dropped as closure of inefficient capacity cut its aluminum production by 10.8% on the year to 1,783,000 tonnes during H1. The average price of three-month aluminum on the LME fell from $ 1,919 per tonne in H1 2013 to $ 1,753 per tonne in H1 2014.
Looking ahead, Rusal is targeting aluminum production of 1.8 million tonnes for H2 2014. LME spot aluminum prices are expected to remain around its current level and there is potential upside for physical premiums, Deripaska said in the report. The Russian aluminum giant expects global aluminum consumption to increase 6.5% to 55 million tonnes in 2014, and sees global aluminum deficit at 1.5 million tonnes in 2014.
Zhejiang Yaang Pipe Industry Co., Limited (www.nctv.net)