UC Rusal To Raise Output; Demand Outlook Strong

Russia's United Company Rusal, the world's biggest aluminum and alumina producer by output, said it plans to significantly expand production in the next five years amid a positive outlook for aluminum prices globally. The company aims to raise its annual aluminum output by 65% from the current 4 million metric tons in the next five years, and increase its annual alumina output by 66% from 11 million tons during the same period, said Peter Finnimore, the company's aluminum sales director. "The growing consumption from Brazil, Russia, India and China, and the rising cost of energy and raw materials will keep aluminum prices to at least remain solid in the next couple of years," Finnimore told reporters in a media briefing. Besides, the price increases in other metals in recent years, such as zinc and steel, will also make aluminum an attractive substitute. "We expect China to become a net aluminum importer around 2009-2010...We expect to begin to sell around 200,000- 300,000 tons of aluminum to China then, depending on the market situation," he said.