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Aluminum Market Update: Global Output Rises, Russian Production Drops

Strategic Insights

— 1 min read

Russian aluminum output declined by 8.6% in the first eight months of the year, according to the Federal Statistics service. However, global aluminum output saw a slight increase in August, with total production rising by 0.3% to 1.954 million tons. Meanwhile, major mining companies such as Rio Tinto and BHP Billiton are taking cautious approaches to the market, with a focus on preserving cash and exploring new opportunities. The Zambian government is also working to attract foreign investment by maintaining incentives and tax breaks in the mining sector.

Key Takeaways:

  • Russian aluminum output fell by 8.6% in January-August, with the Federal Statistics service reporting a decline in production.
  • Global aluminum output increased by 0.3% in August, with total production reaching 1.954 million tons.
  • Rio Tinto Ltd. remains cautious about the short-term outlook for the aluminum market, prioritizing cash preservation for its aluminum business.
  • BHP Billiton Ltd. will begin copper exploration in Zambia's Western Province next month.
  • The Zambian government plans to maintain incentives and tax breaks in the mining sector to attract foreign investment.
  • United Company Rusal, a major Russian aluminum producer, is considering various options for capital-raising, including a possible initial public offering.
  • Mineral dealers in Congo's North Kivu Province are in dispute with local authorities over a tax increase of 20%.
  • Copper prices fell to a one-week low on the London Metal Exchange, influenced by a stronger dollar and rising inventories.

Statistics:

  • Russian aluminum output declined by 8.6% in January-August.
  • Global aluminum output increased by 6,000 metric tons in August, representing a 0.3% rise.
  • Total world aluminum output reached 1.954 million tons in August.
  • Rio Tinto Ltd.'s cash preservation priority affects its aluminum business in the short term.
  • BHP Billiton Ltd. will invest in copper exploration in Zambia's Western Province next month.
  • The Zambian government plans to maintain incentives and tax breaks in the mining sector to attract foreign investment.
  • United Company Rusal is considering various options for capital-raising, including an initial public offering.
  • Mineral dealers in Congo's North Kivu Province face a 20% tax increase.
  • Copper prices declined by 1.5% on the London Metal Exchange.

Sources:

  • Federal Statistics service
  • International Aluminum Institute
  • Rio Tinto Ltd.
  • BHP Billiton Ltd.
  • Zanis, state news agency of Zambia
  • United Company Rusal
  • Dow Jones Newswires

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