Global aluminium prices to rebound on production cuts - Rusal

21 June 2012 12:04  [Source: ICIS news]

SINGAPORE (ICIS)--Global prices of aluminium, a key downstream market for caustic soda, are expected to rebound on production cutbacks, a company official said on Thursday.

“Aluminium prices are at the bottom level,” Aleksey Tarasov, head of the caustic soda commerical division at Russia's Rusal, the world's largest aluminium producer. 

Metal price increases will be supported by capacity cuts recently announced by global producers such as Alcoa, Rio Tinto and Norsk Hydro, he said in a presentation at the 16th World Chlor-alkali Conference (21/22 June), organised by ICIS and Tecnon OrbiChem.

Approximately 3.7m tonnes of global aluminium capacity are in the risk area, he said. 2.3m tonnes of capacity have already been shut down in China since mid-2011, while cutbacks are expected in Europe, he added.

China, the Middle East and Russia are the main drivers of global growth, with production in the Middle East expected to increase by 1.5m tonnes by 2015.

The alumina industry accounts for about 15% of global caustic soda demand and more than 60% of inter-regional caustic soda trade.

($1 = €0.79)

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By: Abache Abreu
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