UC Rusal （0486）, the world's largest aluminum producer, plans to increase production of aluminum and alumina by 2 percent and 8 percent, respectively, this year.
The planned growth of aluminum production is smaller than the 3 percent recorded last year, as Rusal seeks to keep production growth steady and "maintain price discipline," deputy chief executive Oleg Mukhamedshin said in a teleconference yesterday.
Total aluminum output reached 4.08 million tonnes last year.
Rusal chief executive Oleg Deripaska said 2010 "witnessed the recovery of global aluminum consumption to levels above even the most optimistic forecast of experts."
Shares of the Moscow-based company surged nearly 9 percent yesterday, closing at a record HK$13.60 - double the record low of HK$6.72 in mid-June. Turnover amounted to HK$165.64 million, as 12.34 million shares changed hands.
The shares were floated at HK$10.80 in January last year.
Looking forward to 2011, the firm predicts aluminum prices to sustain levels above US$2,500 （HK$19,500） per tonne, backed by underlying demand. It forecasts the premium of aluminum sales will be in the range of US$180-US$195 per tonne in Europe, US$110-US$120 in Japan, and US$130-US$150 in the United States.
Rusal also expects several aluminum exchange traded funds to be launched this year, with the first ETF kicking off in London "in a matter of weeks rather than months," Mukhamedshin said.
The firm has said it will consider supplies to an aluminum ETF, but will not sponsor the fund itself.
Separately, the Russian company is also seeking to raise one billion yuan （HK$1.18 billion） from a bond issue by the end of next month to finance the purchase of raw materials in the mainland.
Its board has approved a ruble bond issue to raise up to 30 billion rubles （HK$7.8 billion）, comprising two tranches of 15 billion.
The aluminum producer said it will review a proposal of Norilsk Nickel to buy back its 20 percent stake for US$12.8 billion.
Rusal holds a 25 percent stake in Norilsk.
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