SMM7 March 29: Russian aluminum company (Rusal) said that it is expected to start the production of "green aluminum" (Green carbon aluminium) next year, its supply will exceed 10 million tons / year, and sales of "green aluminum" will reach 3.5 million tons / year by 2025. The 3.5 million-ton volume means the company can sell it as a separate asset class, which could then be the cheapest green aluminum product on the market.
Green carbon aluminium has strict restrictions on carbon dioxide emissions, carbon emissions per ton of aluminum production can not exceed 4-7 tons.
Rusal did not disclose the sales share of its ALLOW brand, producing 1 ton of the brand's aluminum and emitting less than 4 tons of carbon dioxide. But the company says it has the ability to start mass production.
Andryushin, the company's director of marketing and sales, said that the current world supply of "green aluminum" is less than 10 million tons, accounting for about 15% of the world's total primary aluminum supply of 60 million tons.
This share is likely to grow rapidly over the next five to ten years.
Executives said they thought there was a "good opportunity" for the aluminium market to recover after governments released the post-COVID-19 stimulus package. The company expects sales to reach 90 per cent of normal levels by the fourth quarter, with full-year sales down 10 per cent and 15 per cent from previous forecasts.
Despite the oversupply in the market, the current aluminum price is still favorable and sustainable.
In addition, Rusal said it did not intend to make any acquisitions in the market at present and would focus on further reducing its carbon footprint.
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