RUSAL: 1Q metal production decreased
RUSAL Corporation has published the results of its work for the 1st quarter of this year. According to the company, primary aluminum smelting decreased by 2.3% compared to the 4th quarter of 2013 and is 883 thousand tons against 904 thousand tons. If we compare the indicator with the same period of last year, then production fell by 12.3% - respectively, by 124 thousand tons, when the volume of smelting reached 1007 thousand tons. This decline is due to the program of capacity reduction, which provides for the suspension of aluminum production at the inefficient enterprises of the corporation, which are mainly located in the Urals and in the European part of the country. If in the fourth quarter of last year the share of goods with added value was 43% of the total volume of metal production, this year it increased to 44%. In the same period of 2013 this share was 40%.
The cost of metal in the 1st quarter of this year on the London Stock Exchange continues to decline, reaching the lowest level since the 2nd quarter of 2009. In the 1st quarter of this year, the average cost of aluminum at the exchange was 1708 USD / ton, which is lower than the cost of metal in 4 Quarter of last year by 3.4%, when it was 1769 USD / ton. Despite the negative dynamics regarding the value of the product, the premiums to value on the London Stock Exchange are quite high and amount to 336 USD / ton in the 1st quarter of this year. This indicator is higher than the data of the 4th quarter of 2013 by 21.3%, when the premiums were 277 USD / ton. The cost index per tonne in the 1st quarter of this year also declined - compared to the fourth quarter of last year, when the indicator was 1864 USD / ton, the current price fell by 6.6%,
Revenues for the first quarter of this year are almost the same as in the fourth quarter of last year, amounting to USD2,223 million versus USD2,225 million. The fall in prices was compensated to a certain extent by the growth in the volume of aluminum sales, the increase in premiums and the expansion of the product line.
Compared to the fourth quarter of last year, when the normalized loss was 310 million USD, the first quarter of this year amounted to 169 million USD.
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