Russian giant Rusal expects its aluminum output to decline further to 3.5 million metric tons this year.
Company's aluminum production declined by 8% year-on-year 3.86 million metric tons last year, the lowest output since its 2007 merger with Sual.
“Last year witnessed the supply side adopting a disciplined approach to production, with Rusal successfully completing its production cut program which resulted in cuts of 316,000 mt, or 8%, compared to 2012. Reduced operational levels are expected to be sustained throughout 2014 as Rusal remains at the forefront of creating an efficient supply side dynamic,” said Rusal CEO Oleg Deripaska, in a statement on Tuesday.
The full impact of the production cuts, backed by growing consumption demand, have begun to be take effect, with the aluminum market – ex - China – moving into deficit at the end of 2013. This deficit is estimated to expand further in 2014.
Looking ahead, RUSAL expects global demand to remain healthy, with 6% growth forecast in 2014, supported by positive signals of returning confidence across all key sectors and markets. While demand fundamentals remain robust, it is vital that the supply side continues its disciplined approach to production. This will take time but there is no doubt that the industry is on the right path towards environmentally friendly and economically efficient production.
The company's aluminum production was the highest in 2008 at 4.42 million metric tons.