Aluminum is Strong: UC Rusal Posts Best Results in 3 Years

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United Co. Rusal reported its best results since the fourth quarter of 2011 as prices and premiums for the world’s largest aluminum producer increased.

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Adjusted earnings before interest, tax, depreciation and amortization in the third quarter rose to $470 million from $220 million in the prior 3 months, Moscow-based Rusal said this week in a statement. Net income was $220 million, up from $116 million, and sales rose 9.6% to $2.48 billion. Analysts typically compare Rusal’s results against the previous quarter.

“Healthy consumption growth coupled with production curtailments, have led to a deficit in the global market” excluding China, Chief Executive Officer Oleg Deripaska said in the statement. That, together with falling inventories in London, “means the deficit is continuing to widen,” he said.

Following a two-day decline on the LME, the aluminum cash price climbed up 2.3% to end at $2,064 per metric ton on Friday, November 14. The 3-month price of aluminum is back up, rising by 2.1% on the LME on Thursday to close at $2,056 per metric ton. The cash price of primary Indian aluminum weakened by 0.2%, settling at INR 126.20 ($2.06) per kilogram.

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Chinese aluminum prices were mixed for the day. After remaining flat for three days, the Chinese aluminum cash price fell 2.0% on Thursday to CNY 13,680 ($2,227) per metric ton. The price of Chinese aluminum scrap was unchanged at CNY 12,250 ($1,995) per metric ton. For the fifth consecutive day, the price of Chinese aluminum billet held flat at CNY 13,590 ($2,213) per metric ton. The price of Chinese aluminum bar saw little movement at CNY 14,200 ($2,312) per metric ton.

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