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| Tuesday, 18 February 2014, 09:00 HKT/SGT | |
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Source: RUSAL | |
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MOSCOW, Feb 18, 2014 - (ACN Newswire) - UC RUSAL (SEHK: 486, Euronext: RUSAL/RUAL, Moscow Exchange: RUALR/RUALRS), a leading, global aluminium producer, announces its key production data for 2013.
Key highlights:
-- Total aluminium output amounted to 3,857 thousand tonnes in 2013, a decrease of 8% as compared to that of 2012.
-- Alumina output totaled 7,310 thousand tonnes in 2013, a decrease of 2% as compared to that of 2012.
-- Bauxite production totaled 11,876 thousand tonnes in 2013, a decrease of 4% as compared to that of 2012.
Commenting on the full year production results, Oleg Deripaska, CEO of RUSAL said:
"2013 witnessed the supply side adopting a disciplined approach to production, with RUSAL successfully completing its production cut programme which resulted in cuts of 316,000 tonnes, or 8%, compared to 2012. Reduced operational levels are expected to be sustained throughout 2014 as RUSAL remains at the forefront of creating an efficient supply side dynamic.
The full impact of the production cuts, backed by growing consumption demand, have begun to be take effect, with the aluminum market - ex-China - moving into deficit at the end of 2013. This deficit is estimated to expand further in 2014. Looking ahead, RUSAL expects global demand to remain healthy, with 6% growth forecast in 2014, supported by positive signals of returning confidence across all key sectors and markets. While demand fundamentals remain robust, it is vital that the supply side continues its disciplined approach to production. This will take time but there is no doubt that the industry is on the right path towards environmentally friendly and economically efficient production."
Global aluminium industry in 2013
Highlights
UC RUSAL forecasts:
-- Global aluminum consumption growth of 6% in 2014 over 2013
-- China and other Asian economies are expected to grow strongly and the developed markets including the US and Europe should continue to show a healthy growth
-- Continued capacity curtailments despite production increase in the Middle East and Asia are expected to add only about 70 thousand tonnes of cumulative 2014 production out of China
-- Ex-China aluminium market deficit will grow from 570 thousand tonnes in 2013 to about 1.4 million tonnes in 2014
-- Chinese aluminum market will continue to be balanced with gradual production capacity increase
-- In 2014 aluminum premiums remain well supported due to strong financial and physical demand
Global aluminum demand
Aided by strong growth within Asia, the US and by a continued market rebound in Europe, global aluminium consumption rose by 6% in 2013 to 51.7 million tonnes, with ex-China consumption rising by 4% year-on- year to 26.23 million tonnes. Consumption in China, the largest growing market, grew by 13% year-on-year to 25.5 million tonnes, followed by India (6% growth), ex-China Asia (6% growth) and North America (4% growth). Consumption growth in Europe continued, with a strong rebound seen in H2 2013 and total 2013 growth reaching 2%, compared to 2012 levels.
According to NBS data, Chinese fixed-asset investment increased 19.6 percent year-on-year. The NBS data also showed that new construction projects rose 13.5 percent in 2013. During 2013, the Chinese automotive industry was the top gainer, surging 14.9% after record sales of 21.98 million vehicles according to the China Association of Automobile Manufacturing (CAAM).
In South East Asia, the transport sector remained strong, with Thailand continuing to be a leader in automotive production in the region. Construction activity also grew in the region, led by infrastructure development and the building of new houses.
In Japan, following industrial production weakness experienced during the first nine months of 2013, economic indicators have in recent months signaled improved market conditions, and may help reverse declines in demand. The Japanese PMI in December was 55.2, which was the fastest pace of expansion in more than seven years, suggesting that the government's pro-growth policies, introduced in early 2013 have started to spill over into Japan's manufacturing sector.
Construction, transport and the electronic sectors remain the key drivers of aluminium consumption growth within India. In November, for the first time in four months, the HSBC/Markit PMI climbed to 51.3, as new orders rose, raising hopes for the country's economy. Manufacturing activity picked up, led by a rise in new domestic orders which helped lift output growth.
Construction and packaging growth in the Middle East is encouraging local consumption of primary metal,investment in extrusions and flat rolled products. The production of aluminium extrusions and flat rolled products will dominate the Middle Eastern market due to the expectation of robust growth in the construction and packaging sectors.
The North American transport sector remained the main driver of aluminium consumption growth in the region. Light vehicle production in North America was 16.2 million units in 2013, up 4.3 percent compared to 2012. The key story in the sector continues to be the increased demand for aluminium automotive body sheets and announced expansions by aluminium rollers to meet the demand.
Aluminum demand in Europe continued to experience a strong rebound in Q4 2013, with the biggest increase from Turkey (10%), followed by Germany (3%) and France (2%). In the consumer market, European new car registrations jumped 13.3 percent in the month of December.
Global aluminum supply
According to recently published statistics from the International Aluminum Institute and CRU market data, global aluminum production excluding China reached 25.66 million tonnes in 2013, down by 48 thousand tonnes compared to 2012. Despite aluminium production growth in the Middle East and other Asian countries, the estimated 1.2 million tonnes of capacity cuts in Europe, North America and South America resulted in a deficit market. According to UC RUSAL's latest estimates, as a result of continued ex-China consumption growth and almost unchanged production there was a 570 thousand tonnes aluminum ex-China supply deficit.
Following recent Chinese government measures to tackle overcapacity and deteriorating market conditions the Chinese aluminium industry has tempered net capacity rises with an increase of 2.2 million tonnes with shutdowns in central and southern parts of China amounting to 2.1 million tonnes. Apparent consumption grew by 2.9 million tonnes and by year end there was a 340 thousand tonne deficit.
As a result of continued consumption growth, strong financial demand and the current tight aluminum supply, physical premiums continue to rise, reaching record highs by the end of 2013. After the fall created by the uncertainty over LME warehousing policy premiums in the middle of the year by year end the Rotterdam duty unpaid premium reached $210 - 230/t, the US Midwest premium 12 cents/lb and main Japanese port $255/t. The rise has continued into 2014 with the Midwest at 20 cents/lb and Rotterdam $275 - $315/t in January.
Production results
Aluminium production results
UC RUSAL's total attributable aluminum output amounted to 3,857 thousand tonnes in 2013, as compared to 4,173 thousand tonnes in 2012 (a decrease of 8%).
The decrease in volumes during the period discussed above was due to gradual mothballing of production at most aluminium smelters located in European part of Russia, as well as ALSCON (Nigeria). The mothballing of production is a result of the curtailment program for inefficient capacity initially approved by the Board of the Company and announced in the third quarter of 2012 and updated further in September 2013 on the back of prevailing unsupportive economic situation in the industry.
The decrease in volumes was also supported by smelters located in Siberian Region (Russia), where production rationalization was performed mainly through amperage reduction.
Based on the information currently available and barring any unforeseeable circumstances, the production is expected to be decreased further in 2014 to 3.5 million tonnes under the inefficient capacity curtailment program announced in September 2013.
Alumina production results
UC RUSAL's total attributable alumina output amounted to 7,310 thousand tonnes in 2013, as compared to 7,477 thousand tonnes in 2012, a decrease of 2%.
The decrease in the volume of alumina production in 2013 as compared to that of 2012 was primarily due to Friguia Alumina Refinery (Guinea) where operations were suspended in April 2012 and Queensland Alumina Ltd (Australia) where production decreased temporarily following hurricane Oswald in January 2013.
Bauxite production results
UC RUSAL's total attributable bauxite output was 11,876 thousand tonnes in 2013, as compared to 12,365 thousand tonnes in 2012 (a decrease of 4%).
The decrease in the volume of bauxite production in 2013 as compared to 2012 was primarily due to suspension of mining operations at Friguia bauxite mine in Guinea since April 2012, suspension of Cheryomukhovskaya mine at North Urals bauxite mine due to construction of Cheryomukhovskaya-Glubokaya mine; this was partially offset by the increased output at other facilities in Timan (Russia) and Windalco.
The decrease in bauxite volumes in 2013 is in line with alumina production for the corresponding period.
Nepheline production results
UC RUSAL's nepheline syenite production was 4,662 thousand tonnes in 2013, as compared to 4,947 thousand tonnes in 2012 (a decrease of 6%).
The decrease in the volume of nepheline mine took place mainly due to the reduced alumina production at Achinsk Alumina Refinery.
Foil and packaging production results
The aggregate aluminium foil and packaging material production from the Company's plants increased by 3% to 89 thousand tonnes in 2013, primarily due to increased production at Armenal and Ural Foil in Russia.
Forward-looking statements
This press-release contains statements about future events, projections, forecasts and expectations that are forward-looking statements. Any statement in this press-release that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause UC RUSAL's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks and uncertainties include those discussed or identified in UC RUSAL's prospectus dated 31 December 2009. UC RUSAL makes no representation on the accuracy and completeness of any of the forward-looking statements, and, except as may be required by applicable law, assumes no obligations to supplement, amend, update or revise any such statements or any opinion expressed to reflect actual results, changes in assumptions or in UC RUSAL's expectations, or changes in factors affecting these statements. Accordingly, any reliance you place on such forward-looking statements will be at your sole risk.
Contact:
Olga Sanarova
+7 (495) 720-51-70
Olga.Sanarova@rusal.com
Topic: Press release summary
Source: RUSAL
Sectors: Metals & Mining
https://www.acnnewswire.com
From the Asia Corporate News Network
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