Reuters
RUSAL sees global aluminium output down, China cuts
Edited by : AL CIRCLE
2 min read
Top aluminium producer RUSAL Plc said on Monday that it expects more companies to cut aluminium output this year, with China accounting for about a third of global cuts, but still forecast that global output would top demand.
A supply glut on the back of a deepening European debt crisis and global economic slowdown has hurt demand and prices for the lightweight metal, sending many aluminium producers into the red and triggering a round of production cuts, including at top U.S. aluminium maker Alcoa.
"RUSAL's estimation is that primary aluminium production losses ex-China may achieve 2.7 million tonnes in 2012, and expect China closures will cut 1.2 million tonnes," Rusal said said in a statement.
That would equal a total cut of 3.9 mln tonnes, about 8 percent of its previous 2012 production forecast and take forecast global output to around 48.75 million tonnes, a RUSAL spokesman said.
Top U.S. aluminium producer Alcoa said in January it would slash output at two Spanish smelters and shut its Portovesme smelter in Italy, putting about 1,500 people out of work.
Some analysts expect excess capacity in aluminium smelting will drag on for years to come as political pressures in China and Russia to keep jobs and push self-sufficiency prevent or delay plant closures.
RUSAL said its aluminium output rose 1 percent to 4.12 million tonnes in 2011 and alumina production was up 4 percent at 8.15 million tonnes.
The company decided to partially shift sales of aluminium produced at the end of 2011 to 2012 and revenue from these sales will be reflected in the first quarter of 2012, it added.
A supply glut on the back of a deepening European debt crisis and global economic slowdown has hurt demand and prices for the lightweight metal, sending many aluminium producers into the red and triggering a round of production cuts, including at top U.S. aluminium maker Alcoa.
"RUSAL's estimation is that primary aluminium production losses ex-China may achieve 2.7 million tonnes in 2012, and expect China closures will cut 1.2 million tonnes," Rusal said said in a statement.
That would equal a total cut of 3.9 mln tonnes, about 8 percent of its previous 2012 production forecast and take forecast global output to around 48.75 million tonnes, a RUSAL spokesman said.
Top U.S. aluminium producer Alcoa said in January it would slash output at two Spanish smelters and shut its Portovesme smelter in Italy, putting about 1,500 people out of work.
Some analysts expect excess capacity in aluminium smelting will drag on for years to come as political pressures in China and Russia to keep jobs and push self-sufficiency prevent or delay plant closures.
RUSAL said its aluminium output rose 1 percent to 4.12 million tonnes in 2011 and alumina production was up 4 percent at 8.15 million tonnes.
The company decided to partially shift sales of aluminium produced at the end of 2011 to 2012 and revenue from these sales will be reflected in the first quarter of 2012, it added.
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