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Rusal expects China’s aluminium demand to improve
Edited by : AL CIRCLE
2 min read
Russia’s United Company RUSAL, the world’s top aluminium producer, said it expected orders to pick up towards the year-end due to a rebound in China.
Tepid demand for aluminium in an oversupplied market has weighed on producers including Aluminum Corp of China Ltd. Prices have slumped 10 percent over the last 12 months and led RUSAL to report its biggest quarterly recurring net loss since its listing in 2010.
The outlook may improve from the final quarter of the year. RUSAL signalled a pick-up in China, the world’s biggest consumer of aluminium, citing market speculation that the government will support infrastructure building and start stockpiling as it did in 2008 and 2009.
The company controlled by Russian billionaire Oleg Deripaska said it was optimistic thanks also to growing North American demand for the metal, used in drink cans, aircraft and iPads.
“This will be largely driven by a Chinese rebound in growth, a resilient USA automotive sector as well as new monetary stimulation steps taken by global central banks to support global economic growth and financial markets,” RUSAL said.
RUSAL said China was expected to remain the largest growing market this year at 9 per cent, followed by India at 7 per cent and North America at 6 per cent.
China said on Saturday it is effectively turning the corner on the economy and likely to meet its growth target for the year as a slowing trend had halted.
The market value of RUSAL has declined by about 27 per cent to us$8.7 billion over the past 12 months.
Despite RUSAL’s market-leading position, the weak operating environment has heaped pressure on the company, which is embroiled in a shareholder battle over its stake in Russian miner Norilsk Nickel.
For the three months ended September, RUSAL posted a recurring net loss of US$76 million, lagging the average forecast for a US$35 million loss in a Reuters poll of nine analysts. That compares with a recurring net profit of US$620 million a year earlier.
RUSAL made a net loss of US$118 million in the three-month period against a US$432 million profit a year earlier.
Tepid demand for aluminium in an oversupplied market has weighed on producers including Aluminum Corp of China Ltd. Prices have slumped 10 percent over the last 12 months and led RUSAL to report its biggest quarterly recurring net loss since its listing in 2010.
The outlook may improve from the final quarter of the year. RUSAL signalled a pick-up in China, the world’s biggest consumer of aluminium, citing market speculation that the government will support infrastructure building and start stockpiling as it did in 2008 and 2009.
The company controlled by Russian billionaire Oleg Deripaska said it was optimistic thanks also to growing North American demand for the metal, used in drink cans, aircraft and iPads.
“This will be largely driven by a Chinese rebound in growth, a resilient USA automotive sector as well as new monetary stimulation steps taken by global central banks to support global economic growth and financial markets,” RUSAL said.
RUSAL said China was expected to remain the largest growing market this year at 9 per cent, followed by India at 7 per cent and North America at 6 per cent.
China said on Saturday it is effectively turning the corner on the economy and likely to meet its growth target for the year as a slowing trend had halted.
The market value of RUSAL has declined by about 27 per cent to us$8.7 billion over the past 12 months.
Despite RUSAL’s market-leading position, the weak operating environment has heaped pressure on the company, which is embroiled in a shareholder battle over its stake in Russian miner Norilsk Nickel.
For the three months ended September, RUSAL posted a recurring net loss of US$76 million, lagging the average forecast for a US$35 million loss in a Reuters poll of nine analysts. That compares with a recurring net profit of US$620 million a year earlier.
RUSAL made a net loss of US$118 million in the three-month period against a US$432 million profit a year earlier.
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