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Rusal expects aluminum consumption in Russia to mo

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Rusal expects aluminum consumption in Russia to more than double in 7 years

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Tuesday, 18 Sep 2012

Interfax reported that UC Rusal expects aluminum consumption in Russia to more than double over the next 7 years from an anticipated 900,000 tonnes in 2012.

Mr Oleg Deripaska CEO of UC Rusal said that "Aluminum consumption could more than double in the next seven years. Consumption in Russia and the CIS could come to 900,000 tonnes in 2012.

Mr Sergei Belsky Rusal's director for sales in Russia and the CIS said that “We expect consumption to top 1 million tonnes in the next 18 months. The automobile industry, which will grow by up to 8% will be the main consumption growth driver in the next seven or 8 years.”

Mr Belsky said that the Russia and CIS markets were the most lucrative because 75% of the supplies there were value added products. Rusal aims to boost sales of cast-house alloys, used mainly by the automobile industry, 6% this year in Russia and the CIS. That's the highest growth for any Rusal product.

He said that the cable industry is where the second biggest growth will be as Russia modernizes its power grid infrastructure aided, Rusal expects, by government funding. Sales of wire-rod in Russia and the CIS should rise 3% in 2012.

Mr Belsky said that Rusal has also started to develop a new aluminum zirconium alloy which has been tested and could go on sale soon. Its Irkutsk smelter is launching production of aluminum alloyed with rare earth and transition metals which could be used instead of copper in the cable industry.

He said that at present, Rusal has more than 600 customers in Russia and the CIS, 36% of them from the fabrication industry, 30% from the cable industry, 13% from the extrusion industry, 9% the automobile and 7% ferrous metallurgy.

Source - Interfax

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