Market Speaks: LME Aluminium Average Price In Q3 Falls To Lowest In 15 Quarters

Market Speaks: LME Aluminium Average Price In Q3 Falls To Lowest In 15 Quarters

Nov 11, 2019 09:11 IST capital market

RUSAL, the leading global aluminium producer announced its results for the third quarter and nine months ended 30 September 2019. In the third quarter of 2019 London Metals Exchange (LME) aluminium price reached an average of USD 1,761 per tonne, the record low since the end of 2016, demonstrating a 14.3% decrease compared to USD 2,056 per tonne in the third quarter of the prior year. This negative trend was compounded by the decrease in the realized premiums over the LME aluminium price down to an average of USD145 per tonne in the three months ended 30 September 2019, 13.2% lower than USD 167 per tonne in the third quarter of 2018.

These factors resulted in the decrease in revenue of RUSAL for the third quarter of 2019 by 14.8% to USD 2,486 million as compared to USD2,918 million for the same period of the prior year. Revenue in the nine months of 2019 dropped by 8.8%to USD 7,222 million as compared to USD 7,915 million for the same period of 2018, which was partially offset by a 9.8% increase in primary aluminium sales volume. EBITDA in the third quarter of 2019 decreased to USD237 million representing a decline of 64.9% from USD 676 million for the corresponding period of 2018.

While the potential for future price recovery and market growth is still largely undermined by the ongoing US-China trade tensions, positive signs in the automotive markets across Europe and South America and the interest rate cut in Russia should boost demand for end-use aluminium in the upcoming year, the company noted in its outlook.

Powered by Commodity Insights

Related Story