Commodities Buzz: RUSAL Says 2018 Aluminium Prodution Up 1.3% In 2018

Russian aluminum major Rusal said today that its Aluminium production in 4Q18 totaled 943 thousand tonnes (+0.4% quarter-on-quarter (QoQ)), with Siberian smelters representing 93% of totalaluminium output. Total production dynamics remained largely stable with capacity utilization reaching 96%. In 4Q18, aluminium sales decreased (-16.2% QoQ) to 877 thousand tonnes. In 4Q18 sales of value added products decreased to 333 thousand tonnes (-32.4%QoQ). Commodity and value added products (VAP) sales in 4Q18 were significantly challenged by short OFAC General License extensions.

In 4Q18, the average aluminium realized price decreased by 7.0% QoQ to USD2,115/t. The decrease was driven both by the London Metal Exchange. The decline in premiums during 4Q18 is attributed to a number of factors, including market backwardation that contributed to a liquidation of traders stocks and decline of VAP share in product sales mix due to external market drivers related to the Sanctions.

In 12M18, aluminium production totaled 3,753 thousand tonnes (+1.3%, year-on-year (YoY)). In 12M18, aluminium sales decreased (-7.2% YoY) totaling 3,671 thousand tonnes.