Aluminum producer UC Rusal PLC said Monday it expects prices to recover in the second half of 2014 after a year of struggling with declines that led to production cutbacks, the Wall Street Journal reported.
“The aluminum market is in deficit today,” said Oleg Mukhamedshin, a deputy chief executive of Rusal.
The Russian company, which is the world’s largest aluminum producer, slashed production by 8% to 3.9 million metric tons in 2013 and halted production at several smelters after it had called for industrywide cuts in an effort to reduce stockpiles around the world. Rusal said it expects to continue reducing output this year to 3.5 million tons.
On Friday, May 9, the day’s biggest mover was the cash price of primary Chinese aluminum, which saw a 2.4 percent decline to CNY 12,920 ($2,075) per metric ton. The price of Chinese aluminum bar saw essentially no change for the fifth day in a row, remaining around CNY 14,200 ($2,280) per metric ton. The price of Chinese aluminum billet was unchanged at CNY 13,590 ($2,182) per metric ton. For the fifth consecutive day, the price of Chinese aluminum scrap held flat at CNY 12,250 ($1,967) per metric ton.
On the LME, the aluminum 3-month price declined 0.7 percent to $1,761 per metric ton. On the LME, the primary aluminum cash price fell 0.7 percent to $1,717 per metric ton. The Indian aluminum cash price showed little movement last Friday, hovering around INR 106.30 ($1.77) per kilogram.