United Co. Rusal PLC, “said Thursday that it plans to continue its steep production cuts in 2014 as global markets remain heavily oversupplied,” reports The Wall Street Journal.
“The company said it expects to reduce output by 647,504 tons next year as it continues to feel the impact of the full drop in output from several facilities that were mothballed part way through this year. The cuts would come on top of an output decline of 324,700 tons this year as the company has called for an industry-wide reduction in production as massive global oversupply has knocked the bottom out from prices.”
“Rusal continues to react to the current market conditions and may consider further actions to improve its cost position in the industry,” said the company’s first deputy chief executive, Vladislav Soloviev.
The week’s biggest mover on the weekly Aluminum MMI® was the Indian aluminum cash price, which saw a 4.6 percent decline. This comes on the heels of a 4.8 percent increase the week before. The cash price of primary aluminum fell 2.8 percent on the LME to $1,787 per metric ton after rising 3.7 percent the week before. Following a 3.7 percent increase in the week prior, the 3-month price of aluminum fell 2.8 percent on the LME last week to $1,835 per metric ton.
Chinese aluminum prices were mixed for the week. The price of Chinese aluminum billet fell 1.4 percent, after rising 0.7 percent the week before. The cash price of Chinese aluminum fell 1.1 percent last week. Following a 1.1 percent increase in the week prior, the price of Chinese aluminum scrap fell 0.7 percent last week.
Following a steady week, prices for Korean 3003 coil premium over 1050 sheet closed flat. Korean 5052 coil premium over 1050 sheet remained essentially flat from the previous week. European 5083 plate prices held steady from the previous week. European 1050 aluminum remained unchanged for the week.
The Aluminum MMI® collects and weights 12 global aluminum price points to provide a unique view into aluminum price trends. For more information on the Aluminum MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.