October 14 news, Rusal (Rusal) Deputy Chief Executive Officer said that the company plans to significantly increase its supply to China next year.
Several regions of China, the world's largest consumer of metals, have imposed restrictions on electricity consumption in energy-intensive industries such as smelting, leading to aluminium shortages this year.
Rusal (Rusal), the world's largest aluminium producer outside China, plans to supply 30-400000 tonnes of aluminium to China in 2021, roughly the same level as in 2020, and will significantly increase sales next year, said Roman Andryushin, the company's sales director in Russia, CIS and China.
"We plan to sign a series of long-term contracts for the first time in modern history," he said.
China, the world's largest producer of aluminium, usually has little demand for overseas supply, but the rapid recovery in demand after the novel coronavirus outbreak meant it had to import record amounts of aluminium last year.
Global aluminium shortages pushed prices to $3169 a tonne on Thursday, the highest level since July 2008.
As a result of the planned launch of the Taishet smelter, Rusal's total aluminium production will increase to about 4.3 million tons in 2022, Andryushin said. Rusal will produce 3.8 million tons in 2020.
Andryushin expects the global aluminium market to have a shortfall of more than 1.5 million tonnes this year and 1.4 million tonnes in 2020.
"as demand is expected to rise in all economies, we expect the gap to be even larger next year," he said. " "I believe that in the long run, China will face a shortage of aluminium."
Andryushin said recycling of waste aluminum and imports of raw aluminum should help make up for China's aluminum shortage.
Andryushin said the situation in Guinea was complicated. An incident in Guinea last month pushed up aluminum prices, but he said the company's supply of bauxite in Guinea had not been disrupted.
Guinea accounts for about 22% of the world's bauxite production.
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