Aluminum production at Rusal dropped to record low in 2014

Aluminum production at the leading Russian producer Rusal during 2014 decreased by more than 7 percent to 3.6 million tonnes, hitting the lowest level since 2007.

Nevertheless, Rusal's management declares that all production targets have been met. In 2014, the company took strict control of its aluminum production, shifting its focus to higher value-added products, including billets, slabs, wire rod, cast alloys and high purity aluminum, which account for nearly 45 percent of total production. Rusal suspended seven factories during the year in an attempt to improve the supply and demand situation.

The company also said the trend will continue in 2015. Rusal's aluminum production in 2015 is planned at 3.6 million tonnes and will not change compared to 2014. This represents 80 percent of the company's total production capacity of 4.5 million tonnes per year. In addition, Rusal has no plans to resume production anytime soon at the shutdown facilities.

According to Rusal, the average selling price of aluminum rose 3 percent to $ 2,219 per tonne in 2014, up from $ 2,150 per tonne in 2013. Alumina output declined slightly, by 1 percent to 7.2 million tonnes in 2014. On the other hand, bauxite production rose 2 percent year-on-year to 12.1 million tonnes during the year.

Rusal predicts that global aluminum demand will grow 6.5 percent during 2015 in markets other than China, which is likely to face a sharp supply deficit this year.