Aluminium prices could reach $2,500 by end Q2- Rusal

Wed Feb 1, 2012 12:33pm EST

MOSCOW Feb 1 (Reuters) - Aluminium prices are expected to rise up to 10 percent from their current value by the end of the second quarter, as output cuts take effect, a senior executive at Rusal, the world's largest producer of the metal, said on Wednesday.

Prices could rise up to $2,400-$2,500 per tonne, Rusal executive Oleg Mukhamedshin forcecast.

Aluminium prices ended last year near 18-month lows on concerns about economic weakness and oversupply, prompting Alcoa and Norsk Hydro to cut capacity. Rusal is also considering cutting capacity.

Still, Mukhamedshin forecast that demand from Asia and the U.S. will rise this year which, together with the reduced output, will support prices.

Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.