02 JULY 2012Ncnguyana.com
Rusal could be affected by tumbling aluminum prices in Europe
Edited by : AL CIRCLE
2 min read
Rusal’s Guyana operations could be affected as aluminum prices in Europe are tumbling. According to Rusal’s CEO Oleg Deripaska there is a small deficit since May as the market is now highly volatile.
Price of aluminum globally is approximately US $ 24, 00 compared to 35 hundred before the economic crisis. Deripaska says the price has the right balance, because of supply and demand and transportation costs.
Europe demonstrate stable consumption numbers however globally, last year consumption had eleven percent growth with a worldwide expectancy of about seven percent.
As prices down he says there are signs that the stock is also going down.
Deripaska explains that developing countries use other things such as steel but when countries are more developed they use aluminum in the different sectors such as transportation solution and better construction solution therefore aluminum has its own role.
Though right now the company is shadowed by the Eurozone crisis, financial speculations are that aluminum prices will recover soon.
At St. Petersburg International Economic Forum 2012, Rusal's first deputy CEO Vladislav Soloviev said global metal consumption will be driven by Asian countries urbanization, giving the Russian economy a unique opportunity to benefit from Asian demand.
Rusal currently owns 90 percent of the bauxite company of Guyana and owns licenses to develop the Linden and Ituni deposits.
The company also acquired assets for the Aroiama mining company from the government of Guyana and transferred them to the bauxite company of Guyana. Guyana produces 2.2 million Tonnes of bauxite annually.
Price of aluminum globally is approximately US $ 24, 00 compared to 35 hundred before the economic crisis. Deripaska says the price has the right balance, because of supply and demand and transportation costs.
Europe demonstrate stable consumption numbers however globally, last year consumption had eleven percent growth with a worldwide expectancy of about seven percent.
As prices down he says there are signs that the stock is also going down.
Deripaska explains that developing countries use other things such as steel but when countries are more developed they use aluminum in the different sectors such as transportation solution and better construction solution therefore aluminum has its own role.
Though right now the company is shadowed by the Eurozone crisis, financial speculations are that aluminum prices will recover soon.
At St. Petersburg International Economic Forum 2012, Rusal's first deputy CEO Vladislav Soloviev said global metal consumption will be driven by Asian countries urbanization, giving the Russian economy a unique opportunity to benefit from Asian demand.
Rusal currently owns 90 percent of the bauxite company of Guyana and owns licenses to develop the Linden and Ituni deposits.
The company also acquired assets for the Aroiama mining company from the government of Guyana and transferred them to the bauxite company of Guyana. Guyana produces 2.2 million Tonnes of bauxite annually.
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