Rusal aims to double value-added aluminum sales in 2015

San Diego （Platts）17Jan2011-----Rusal plans to double its value-added aluminum sales to 2.4 million mt in 2015, expanding to key markets such as China, a senior official at the Russian aluminum producer said Monday.

The company's sales objective is to maximize the long-term and sustainable return of its cast products in all markets, according to Steve Hodgson, head of international sales at Rusal. The Russian company wants to establish a trading presence in China.

"2010 was most definitely a very good year for recovery," Hodgson told audience at Platts Aluminum Symposium in San Diego. "We see a very solid growth in value-added segment." Demand was largely driven by automotive engineered products.

Rusal's sales of value-added aluminum products, which include billet, wire rod, sheet ingot and foundry alloy, amounted to around 1.3 million mt in 2010, up from around 750,000 mt in 2009, according to Hodgson's presentation. The producer expects warehousing transactions will keep the availability of aluminum tight throughout 2011.

"We don't anticipate seeing a large wave of this metal coming out in 2011," Hodgson said. "The warehouses will remain quite a substantial customer, super-customer if you like, at least for the foreseeable future."

Rusal forecasts that aluminum consumption will grow 8% in 2011 compared to 2010, and 5-6% per annum over the next decade. "We are rather bullish about the future," Hodgson said. Half of global aluminum consumption in 2011 should be in China and the Asian country is expected to become a sustainable net importer of primary aluminum. But, "it's not just a China story," Hodgson said, pointing to demand coming from Russia and Latin America as well.

"Looking forward, we do also see an increasing shift in demand profile for aluminum products, moving away from the infrastructure-led boom in demand in mid-2000's to today, more to consumer-led growth," pointing to urbanization in South East Asia and China. resulting in increased personal wealth and spending. Consumption growth in China is expected to remain high at a 9% compound annual growth rate until 2015, Rusal estimates. Power availability and cost will be key to the development of the Chinese aluminum industry.