Rusal's core profit grew 48% in the second quarter, higher than aluminium
Aug 26, 2017

Rusal's core profit grew 48% in the second quarter, higher than aluminium

According to foreign news August 25th, Russian Aluminum giant - Russian Aluminum Inc (Rusal) announced Friday, the company's second quarter core profit growth 48%, helped by the aluminum price higher. Rusal said the optimistic outlook for the second half, due to tight supply China.

Rusal's second quarter earnings before interest, tax, depreciation and amortization increased from $344 million in the prior year to $510 million, in line with a $507 million estimate of six bank analysts surveyed

Rusal said in a statement: "in the second half of the year, we think the outlook for the aluminum industry is optimistic. Aluminum consumption will be good by the end of the year, and consumption will increase by 5.9%. in the whole year of 2017.""

The company said: "the supply side, the current focus of attention in the China, after Chinese regulators issued a notice about the reduction of aluminum production capacity, which may lead to the 2017 global market supply shortage of aluminum content widened to about 1 million tons"

Beijing and Tianjin and the surrounding areas of the "blue sky battle" and launched a new offensive. The Ministry of environmental protection yesterday formally announced the "Beijing Tianjin Hebei region and 2017-2018 weeks of comprehensive treatment of autumn and winter air pollution crucial action plan" (hereinafter referred to as the "plan"). The "program" proposed in 2017.

October to March 2018, the Beijing, Tianjin and air pollution transmission channel city (2+26 city) PM2.5 average concentration fell by more than 15%, the number of heavy pollution fell by more than 15% of the main objectives

According to the scheme, the production of many industries will be limited in autumn and winter

"Plan" proposed, will accelerate key industries sewage permit issued by the.10 to be completed before the end of June, power, steel, cement enterprises discharge permit work. Before the end of this year, to complete the copper lead and zinc smelting, electrolytic aluminum, raw material manufacturing, pesticide industry sewage Xu

If the discharge of pollutants is not obtained in accordance with the law, it shall be punished in accordance with the law. If it fails to discharge the sewage according to the permit, it shall stop production according to law and impose a fine; if it refuses to do so, he shall be punished by law according to law

In addition, the heating season, electrolytic aluminum and alumina production enterprises more than 30%. Carbon enterprises reach the emission limits in particular, full production, achieve special emission limits, limiting the production of more than 50%. Nonferrous metals recycling industry limited production casting process 50%. involves the production of APIs in pharmaceutical enterprises,

Pesticide enterprises involved in VOCs emission processes and production processes using organic solvents are involved in VOCs emission processes and are discontinued in principle

In addition, in August 23rd, Premier Li Keqiang chaired a State Council executive meeting, the deployment of central enterprises to promote the deepening of reform to reduce the leverage, promote the quality and efficiency of enterprises; to equity options and dividends and other incentive policy implementation and research projects and funding management system reform progress

Report to drive innovation and development momentum

The meeting pointed out, to achieve industrial upgrading and reducing leverage in promoting new energy conversion. Continue to take effective measures to ensure the completion of this year to resolve steel coal overcapacity, disposal of zombie companies and poor governance enterprises and other tasks. To promote the thermal power, building materials, electrolytic aluminum

And other industries to carry out reduction and reduction, strict control of new capacity

Rusal said: "when considering the anticipated reduction in illegal capacity, the company expects the balance of the Chinese aluminum market in 2017 will improve, and is expected to supply in 2018 will be more tight.""

Rusal expects another 200-300 metric tons of capacity to be closed by the end of the year

Rusal reported a 4.6% increase in aluminium sales in the second quarter to 1 million tonnes last month, and the average price of aluminium jumped 22% to $2087 a tonne

The three - month aluminium price on the London Metal Exchange (LME) has risen by about 25% this year, as demand is strong and China is expected to cut output in the winter

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