China's demand for electrolytic aluminum will increase by 20% this year

Oleg Mukhmadedshin, director of Russia's largest aluminum producer, Rusal Capital Markets, recently accepted an interview with the reporters of the China Business News, and expects China’s demand for electrolytic aluminum to grow by 20% this year. The global demand for electrolytic aluminum is expected to increase from 10% to 12%. Therefore, RUSAL will increase the expansion of the Chinese market and hope that sales in China will increase by 20% this year.
During the financial crisis of 2008, the demand in the aluminum market also decreased significantly. The global aluminum price also fell to a record level of 1,400 U.S. dollars per ton. RUSAL suspended part of its aluminum production and reduced its total production capacity by about 10%. Muhammadsund revealed that the company has now resumed part of its production capacity, but "because the current global economic development is not yet stable, the global aluminum prices in the past two years are not yet very good, lower than our expectations, if the global aluminum prices continue to rise , we will consider restoring full capacity."
However, Muhammadsen expressed optimism about China's aluminum market. “Because the demand for aluminum in the Chinese market has grown very well, and some aluminum smelters in China will reduce production capacity, the low price of aluminum in China will not last long, which gives RUSAL a great opportunity to enter the Chinese market.”
Compared with China's aluminum producers, RUSAL has a low cost advantage. Muhammadshen told the reporter that compared to China’s aluminum plants, RUSAL’s production costs are relatively low due to the large number of hydroelectric power stations in Siberia where Siberia is located. “Generally, every metric ton of aluminum is produced in Russia. The cost is $1,700, but it will exceed $2,000 in China."
In addition to expanding the Chinese market, as the world's largest aluminum producer, RUSAL is also actively promoting the birth of the world’s first aluminum exchange listed fund.
Muhammadshen told this reporter that russia was doing preparations for aluminum ETF eight years ago and has been communicating and discussing with relevant investment banks. Currently, an investment bank is basically ready and is expected to be faster this summer. The first aluminum exchange listed fund can be launched at the end.
Previously, ETF products were mainly concentrated in gold and oil, and RUSAL, the world's largest aluminum producer, will supply aluminum for the first aluminum exchange-listed fund.
"The introduction of aluminum ETFs may increase the global demand for aluminum, so the international aluminum prices may also increase." Muhammadshen said, "We hope that some small and medium-sized investors will obtain more benefits. Of course, this can also increase our profits."

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