United Company RUSAL Plc reported production results for the fourth quarter and year ended December 31, 2012. For the quarter, the company produced 1.04 million tons of aluminum, down 2.1% year-on-year, as alumina output declined 13.3% to 1.81 million tons, and bauxite extraction was down 15.2% to 2.79 million tons. The decrease occurred despite the restart to prove capacity of the Sayanogorsk aluminum smelter. Aluminum volumes sales have decreased, because the company was trying to sell less and consume more, and have been actually buying alumina in the first quarter because some of plants were not operational.

Primary aluminium production was almost flat at 4,173,000 tonnes for the year ended 31 December 2012 compared to 4,123,000 tonnes for the preceding year. Aluminium segment cost per tonne reduced to USD 1,946 per tonne (by 1.9%) in 2012 as compared to USD 1,984 in 2011 supported by a decrease in power tariffs by 9% to USc.3,17/KWh in 2012 as compared to USc.3,48/KWh in 2011. Alumina production was 7,477,000 tonnes for the year ended 31 December 2012 compared to 8,154,000 tonnes for the preceding year. Bauxite production was 12,365,000 tonnes, compared to 13,473,000 tonnes for the preceding year. Total aluminium output increased, mainly due to the recovery to full production capacity at Sayanogorsk aluminium smelter partially interrupted in 2011 following a railway bridge collapse. Alumina output decreased, compared to 2011 in line with production optimization program.

Concerning the outlook for 2013, the company's board of directors has passed a resolution to reduce aluminum output by 300,000 tons at inefficient production facilities in order to maintain Rusal's competitive advantages on the international market amid high energy tariffs and low metal prices. This decision has been agreed with the state authorities, and issues concerning the employment of laid-off employees have been properly addressed. For the year 2013, the company expects the demand to exceed 1 million new construction units to appear. Global primary aluminium consumption is forecast to reach 50 million tonnes (6% growth), with China the growing market (9.5% growth), followed by India (6% growth), Asia excluding China (5.8% growth), North America (5% growth) and Russia & CIS (4% growth). Consumption growth in Europe in 2013 is expected to be 2% lower than 2012 levels. As a consequence, the company forecasts the global aluminium market to be balanced in the current year.