World’s largest aluminum company-Rusal reported a drastic drop in its aluminum output during 2013. The company’s aluminum production touched record lows during the year. The total yearly aluminum production amounted to 3.86 million mt. Further, Rusal sees the output to drop further to 3.5 million mt during 2014.
The aluminum output during 2013 declined by nearly 8% over the year, when compared with the total output of 4.17 million mt in 2012. According to Oleg Deripaska, CEO, Rusal, the company has been successful in implementing the production-cut plans as scheduled. He further stated that the reduced operational levels are expected to be sustained throughout 2014 as well.
Rusal's total aluminum production capacity is 4.5 million mt/year across 14 plants worldwide. Of these 14 aluminum smelters, 12 have cut output year on year in 2013 anywhere from 5% to 90%. The exceptions were the Bratsk and Krasnoyarsk smelters in Siberia, the two largest production units with a capacity of 1 million mt/year each. These two smelters posted 0.2-0.7% output increases in 2013.
Rusal forecasts global aluminum consumption growth of 6% in 2014 over 2013. According to the company, China and other Asian economies are expected to grow strongly and the developed markets including the US and Europe should continue to show a healthy growth. Also, ex-China aluminium market deficit will grow from 570 thousand tonnes in 2013 to about 1.4 million tonnes in 2014.