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The reduction of aluminum production capacity may lead to price hike of raw materials

18 February 2014
The reduction of aluminum production capacity may lead to price hike of raw materials

The importance of mining aluminum is not in doubt. Because of this structural raw material due to its unique qualities, has a very broad scope of application in modern industry. Moreover, the growth of the consumer market associated with the increased demands of this material causes the formation of deficit of this product on metal market. Therefore, the reduction of production capacity, enterprises producing the necessary product could lead to a sharp increase in the cost of commercial products. This view is shared by one of the main leaders of production and supply of aluminum not only on domestic but also on foreign market of the company «RUSAL». Head of strategy and development of this enterprise forecasts a significant growth of prices for aluminum products in the near future. The cost of one ton of important technology raw materials can reach two thousand American dollars for each ton of saleable product. With the constant growth of demand for raw materials by 2015 will further inflate the cost benchmark material.

Closing capacity is an important iron and steel enterprises today is due to the fall in the value of the product. However, the decrease of supply according to analysts, very soon, will boost the cost that you will be able to provide the rest in this segment of the market of the company. When stocks are exhausted, the ever-increasing shortage of aluminum, which will not be able to cover consumer interest, will still lead to higher prices.

Now revised rules storage already produced raw materials. The goal of this initiative was the presence of large queues of consumers, who have long been forced to wait for the physical receipt of the purchased goods. The new Charter limits the period when the metal stored in warehouses. If earlier such a figure was 100 days, now limit safety cut in half. Most manufacturers have expressed strong concern over the reduction in bonus payments for the production of aluminium raw materials. However, management of «RUSAL» hopes for full payment of these premiums increase in the cost of aluminium product. How the situation will develop in the market of such products, only time will tell, however, long-term analysts ' forecasts are quite optimistic.

17 February 2014
19 February 2014