
UC RUSAL, the leading global aluminium producer from Russia reports QoQ increase in the production of aluminium for the third quarter 2017.

Rusal reported total aluminium production of 931 thousand tonnes with an increase of 1.1% QoQ. Production dynamics remained stable with a 95%capаcity utilization rate. Siberian smelters represented 94% of total aluminium output.
In Q3 2017 total aluminium sales dropped 3.4% QoQ to stand at 968 thousand tonnes. The fall in aluminium sales is largely explained by increase of goods in transit due to ports/vessels availability and the realization will take place in the next period.
In Q3 2017, sales of value added products (VAP) stood at 479 thousand tonnes. The company has increased the share of VAP in total sales as per strategy, which now stands at 50% in comparison with 49% in Q2 2017.
In Q3 2017 the average aluminium realized price increased 2.1 % QoQ to USD2,124/t due to positive dynamics in London Metal Exchange component. The average realized premium component declined 7.0% QoQ to USD162/t due to seasonal market indicators decrease.
UC RUSAL estimated that global aluminium demand grew by 5.9% YoY in the first nine months of 2017 to 47.8 million tonnes as a result of strong demand in China, Europe, Asia ex-China, North America and India. Robust demand growth led to a balanced global aluminium market in a deficit of 0.8 million tonnes.
Based on CRU estimates, global aluminium demand ex-China rose by a strong 3.9% in the first nine month of 2017 and YoY to 22.1 million tonnes while production increased by 0.9% YoY to 20.3 million tonnes. This left the rest of the world (ROW) aluminium market with approximately 1.8 million tonnes in deficit in 9M2017.
Rusal expected winter smelting cuts in China will result in an annualized production loss of around 1 million tonnes for aluminium and 3.3 million tonnes of alumina. Deeper losses may take place in carbon materials supply including anodes, coking coal etc. including 100% closures in 26+2 cities during the winter season. As of the date of this announcement, according to SMM, around 4.2 mn tonnes of illegal operating capacity have been closed.
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