
UC Rusal, one of the leading aluminium producers in the world, has unveiled its results for the second quarter and the first half of calendar year 2018 ended on June 30, 2018. According to the results revealed, Rusal’s aluminium production in Q2 2018 stood at 939 million tonnes while that in 2017 was at 921 million tonnes. The primary aluminium production in H1 2018 also increased 39,000 tonnes to stand at 1870 million tonnes, against 1831 in H1 2017. Production cost per tonne in Q2 2018 rose to US$ 1672 per tonne from US$ 1497 per tonne in Q2 2017 and that in H1 2018 grew to US$1679 per tonne from US$ 1456 per tonne in H1 2017.

Despite the rise in production, Rusal’s sales of primary aluminium and alloys recorded lower in Q2 and H1 of 2018 at 783 million tonnes and 1748 million tonnes respectively, compared to 1002 million tonnes and 1748 million tonnes in Q2 and H1 2017. Driven by weaker sales, revenue in Q2 2018 dropped from US$2467 per tonne in Q2 2017, to US$ 2253 per tonne. But in the first half of the year, the company reportedly recorded a growth from US$ 4764 per tonne, as of H1 2017, to US$ 4997 per tonne.
Gross profit of the company rose in H1 2018 to US$ 1393 per tonne from that of US$ 1286 per tonne in H1 2017 but dwindled from US$ 677 in Q2 2017 to US$ 671 in Q2 2018. Adjusted EBITDA of the company stood at US$ 552 in Q2 2018 and US$ 1124 in H1 2018 after rising from US$ 510 and US$ 985 from the corresponding periods last year.
Rusal’s aluminium price per tonne quoted on the LME was at US$ 2259 per tonne in Q2 2018, up 18 per cent from US$ 1911 per tonne in Q2 2017, while that in H1 2018 was at US$ 2209 per tonne, 17.5 per cent higher from US$ 1880 per tonne in H1 2017.
The report says trade wars and imposed import duties, together with the OFAC Sanctions, have caused significant growth of premiums and prices increasing total costs incurred by consumers of aluminium.
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