21 Oct 2010 13:58

Russian aluminum market to expand by 6% in 2011

MOSCOW. Oct 21 (Interfax) - Alcoa Inc., the world's leading aluminum producer, has adjusted its forecast for the Russian aluminum market in 2011 in comparison with 2010, the company said in a statement. The Russian aluminum market will expand by 6% in 2011, Alcoa forecast.

The company told Interfax that its forecasts are based on the situation on the Russian aluminum market and a GDP growth forecast of 3%-4% in 2011.

Alcoa's Klaus Kleinfeld earlier said that one of the reasons for the increase would be the so-called "base effect" or setting a lower base for per capita aluminum consumption in Russia. He said that this figure stands at no more than five to six kilograms per person compared to 30-40 kilograms in developed western countries.

Alcoa earlier forecast aluminum consumption in Russia for 2010 at 900,000 tonnes. Therefore, consumption could go up by 36,000 tonnes in 2011. Alcoa produced 4.222 million tonnes of aluminum in 2009

Alcoa Inc bought the Belaya Kalitva Production Association in the Rostov region and the Samara Metallurgical Plant (SMZ) from United Company RUSAL (UC RUSAL) for $257 million in 2005. The plants were re- named Alcoa Metallurg Rus and Alcoa SMZ in July 2009.