Russian aluminium giant Rusal reported a 48 percent rise in second-quarter core earnings on Friday due to a higher aluminium price, and pointed to a positive outlook for the second half as supply in China tightens.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose to $510 million from $344 million in the same quarter a year ago, in line with a Reuters survey of analysts at six banks for $507 million.
“Looking ahead to the second half of the year, our outlook for the aluminium industry is positive. Consumption of aluminium is set to remain healthy until the end of the year, increasing by 5.9 percent for the whole 2017,” Hong Kong-listd Rusal said in a statement.
“On the supply side, the spotlight is now on China following the recent announcements from Chinese regulators regarding capacity cuts, which may result in global market deficit widening to around 1 million tonnes in 2017,” it said.
The world’s top aluminium producer has embarked on a plan to clear its skies by cutting capacity in heavy polluting coal-fired industries like steel and aluminium, as well as by eliminating overcapacity in those sectors.