UC Rusal reports substantial increase in total aluminium and value added sales in Q2 2017

UC RUSAL the leading global aluminium producer, announces operating results for the second quarter 2017. Aluminium production in Q2 2017 increased 1.2% QoQ to stand at 921 thousand tonnes.  Notably, 94% of total aluminium output was contributed by Siberian smelters. Smelters utilization remained on average at a high of 95%. One more working day in the second quarter 2017 helped in the rise in production.

Total aluminium sales volume stood at 1,002 thousand tonnes, up 1.7% QoQ.  Total value added product sales increased 13.1% to 493 thousand tonnes from 436 thousand tonnes in Q1 2017. The share of sales of VAP in total sales grew to 49.2% in Q2 2017 in comparison with 44.3% in Q1. The strong growth in VAP sales was the result of Rusal’s strategy to increase the share of value added products in total product mix and to upgrade relevant capacities in order to achieve the same.

The average aluminium realized price in Q2 2017 increased by 7.1% QoQ to USD2,087/t. The increase was driven by positive dynamics in LME component as well as the premium component growth to USD174/t in the quarter under review.

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Rusal attributed the price growth in Q2 2016 to the robust demand for aluminium during the period, market expectations of supply disruptions in China coupled with significant production cost inflation. According to RUSAL estimate in H1 2017 global aluminium demand grew by 5.7% YoY to 31.7million tonnes. Global supply in H1 2017 was up by 11.5% to 31.8 million tonnes creating a balanced market throughout.  The company expects the winter capacity cut announcement by the Chinese regulator to result in an annualized production loss of 1.2 million tonnes.