The Russian aluminum major-Rusal's aluminum output during the entire year 2014 dropped significantly by over 7% in 2014 to touch the lowest levels since the company's merger with Sual in 2007. Rusal's aluminum production during 2014 totaled 3.6 million mt.
However, the Rusal management stated that it has met its production guidance for the year 2014. The company had put strict controls on aluminum production and had shifted focus to value added products in 2014. Value added products including billets, slabs, wire rod, foundry alloys and high purity aluminum accounted for nearly 45% of the total production. Rusal had idled seven smelters during the year in an attempt to improve the global demand-supply situation.
The company further stated that the cautioned approach will continue in 2015 as well. Rusal's production guidance for the year 2015 stood at 3.6 million mt, unchanged from 2014. This constitutes 80% of the company's total production capacity of 4.5 million tons per year. Also, it also has no plans whatsoever to resume production any time soon at the idled facilities.
According to Rusal, the average aluminum sale price has increased by 3% from $2,150 per mt in 2013 to $2,219 per mt in 2014. The country's alumina production has dropped marginally by 1% to 7.2 million mt in 2014. On the other hand, bauxite production during the year was up 2% year-on-year to 12.1 million mt in 2014.
Rusal forecasts 6.5% growth in global aluminum demand during 2015. The markets excluding China are most likely to encounter sharp deficit in supply during the year, it stated.