Rusal believes that the top priority for China's aluminum industry is technological innovation

At the "High Level Forum on Promoting Aluminum Applications" held on August 25, 2013, Oleg Mukhamedshen, Vice President of the Strategic Development and Equities Department of Russian Aluminum Corporation, signed a Memorandum of Understanding on behalf of Russian Aluminum Corporation and the China Non ferrous Metals Industry Association. Afterwards, he non-stop exchanged views with reporters on hot topics such as the development of Russian Aluminum Corporation, aluminum market, consumption and investment, and how the aluminum industry can overcome difficulties, Through this report, some information was disclosed to the Chinese aluminum industry, some viewpoints were elaborated, and some suggestions were put forward.

China's aluminum consumption will increase by 10%. According to Oleg, Rusal is the world's largest aluminum production company, with aluminum production reaching 4.1 million tons last year. Rusal has a complete vertical upstream, midstream, and downstream industrial chain. Currently, the number of employees at Rusal has reached 72000, with its headquarters located in Moscow. Rusal is a Hong Kong listed company with a current market value of approximately $9 billion.

When discussing his views on the aluminum market, Oleg said that due to the combined impact of the European debt crisis and the slowdown in China's economic growth rate, the current prices and market environment of world bulk products are not ideal. Meanwhile, the current aluminum market is also in a very slow period of development. However, the emergence of this phenomenon is not due to a significant decrease in demand, but rather to supply issues, as the current market demand remains growing. Despite the debt crisis in Europe, consumption of aluminum products is still rising, and Oleg believes that global demand for aluminum products will increase by 6% to 7% this year.

Oleg introduced that the growth in consumption is mainly driven by China, Japan, and North America. He expects China's aluminum product consumption to increase by 10%, Japan by 5%, and the United States by 6% this year. The main consumer industries for aluminum products are the construction and transportation industries, which are the same in China, the United States, and Japan. Despite strong growth in consumer demand, the development of the aluminum market still depends on the global supply of aluminum products. The price of the aluminum market should be determined by the supply and demand relationship, and the price of aluminum products in the global market should be determined by the London Metal Exchange. However, the current pricing mechanism of the London Metal Exchange and the prices set under this mechanism cannot reflect the true price of aluminum. For example, the current market price of London Metal Exchange is 1850 dollars/ton, but it is impossible to buy aluminum products at this price in the current market, and a premium of nearly 200 dollars/ton must be paid. Therefore, the regional premium is used as a tool to adjust the price of London Metal Exchange, and aluminum products have become a tool for financial speculation. At present, the aluminum reserves on the London Metal Exchange reach 5 million tons, but 75% of these reserves cannot be provided to market consumers. These aluminum products are purchased by investors and benefit from this low interest rate and low storage cost. Currently, the annual output profit brought by the aluminum stock reaches 10%. Therefore, Oleg believes that the price of aluminum on the London Metal Exchange and related regulatory regulations must be reformed to reflect the true market situation and aluminum prices.

When analyzing the problem of overcapacity, Oleg said that the current aluminum market price, even with regional premium, still cannot reflect the aluminum industry