OREANDA-NEWS. UC RUSAL, a leading global aluminium producer, announces its operating results for the second quarter 2016 (“2Q16”).

Key highlights

Aluminium

·         Aluminium production in 2Q16 totalled 919 thousand tonnes (flat QoQ). Smelters utilization remained on average at 95%. Siberian smelters accounted for the largest proportion (~94%) of total aluminium output.

·         2Q16 aluminium sales remained relatively flat QoQ totalling 958 thousand tonnes. The share of value added products (VAP) in total aluminium sales increased to 47% in 2Q16 (vs 41% in 1Q16) largely as a result of the seasonal demand growth and strengthened company’s positions in the niche product markets.

·         In 2Q16 the average aluminium realised price increased by 2.7% QoQ to USD1,711/tonne influenced by the London Metal Exchange (“LME”) QP component growth and a marginal increase of the realized premium amid a better product mix.

·         1H16 aluminium production totalled 1,835 thousand tonnes (+1.2% YoY).

·         1H16 aluminium sales increased by 5.0% YoY to 1,915 thousand tonnes due largely to the addition of the Boguchansky smelter (the plant is currently operating in test mode) volumes. The average realized price in 1H16 declined by 23.7% YoY to USD1,688/tonne primarily as a result of higher aluminium LME prices and commodity premiums in 1H15.

Alumina

·         In 2Q16, total alumina production was 1,851 thousand tonnes (-1.2% QoQ). Alumina production at non-Russian operations decreased marginally by 1.2% QoQ to 1,181 thousand tonnes due to scheduled repairs performed at the Company’s production facilities (in particular at the Windalco and Aughinish refineries). Output at RUSAL’s Russian operations remained largely flat QoQ, totalling 670 thousand tonnes.

·         1H16 alumina output totalled 3,724 thousand tonnes (+2.7% YoY).

Bauxite

·         In 2Q16, bauxite output increased by 3.9% QoQ to 3,126 thousand tonnes driven largely by an increase in mining volumes at the Timan and North Urals mines. Guyana output declined by 23.4% QoQ to 244 thousand tonnes largely due to seasonal factors (rainy season). Nepheline ore production at Kiya Shaltyr in 2Q16 increased further by 8.8% QoQ to 1,208 thousand tonnes. This increase boosted ore stock levels ahead of the winter season at the Achinsk refinery.

·         In 1H16 bauxite output totalled 6,135 thousand tonnes (+2.7% YoY). Nepheline ore output in 1H16 totalled 2,319 thousand tonnes (+10.1% YoY).