UC RUSAL's aluminium production and sales remain flat in 2Q 2016

Russian aluminium giant UC RUSAL yesterday announced its operating results for the second quarter of 2016. Aluminium production remained flat quarter-on-quarter totalling at 919 thousand tons. Smelters utilization of the group remained on average at 95 per cent. Production at the Siberian smelters accounted for the largest proportion, nearly 94 per cent, of total aluminium output.



RUSAL's total aluminium sales in 2Q16 totalled at 958 thousand tons (flat QoQ). The share of value added products (VAP), namely- aluminium alloyed ingots, aluminium slabs, billets and wire rod, in total aluminium sales increased to 47 per cent in 2Q16 (vs 41 per cent in 1Q16) attributable largely to the growth in seasonal demand for the metal and strengthened company’s positions in the niche product markets.



In 2Q16, the average aluminium realised price increased by 2.7 per cent QoQ to $1,711/ton influenced by the London Metal Exchange (“LME”) QP5 component growth and a marginal increase of the realized premium amid a better product mix.

RUSAL's aluminium production in the first half 2016 totalled 1,835 thousand tons (+1.2 per cent YoY). H1 2016 aluminium sales increased by 5.0 per cent YoY to 1,915 thousand tons due largely to the addition of the Boguchansky smelter (the plant is currently operating in test mode) volumes6. The average realized price in 1H16 declined by 23.7 per cent YoY to $1,688/ton primarily as a result of higher aluminium LME prices and commodity premiums in 1H15.

The production data provided by RUSAL in its quarterly report is presented on equity-adjusted basis. Production volumes are calculated based on the pro rata share of the company´s (and its subsidiaries´) ownership.