Aluminum Export Increases and Income Decreases

In 2014 the Ganja aluminum plant Det.Al Holding Company exported 54.8 thousand tons of unalloyed aluminum. This is 0.9% more than in the previous year. Revenues from the product sales ($ 80.3 million) decreased by 2%.

Specialized analytical resources (http://www.webeconomy.ru) note that "for the global aluminum industry in 2014 recovery growth was generally marked." Increase in the world production of primary metal by 6% was recorded. The annual aluminum production amounted to 51.7 million tons. This was aided by strong growth trend in metal prices in the range of $ 1,980 – $2,100 per ton, the website said.

As the figures prove, Azerbaijan occupies an insignificant position in the global aluminum market. However, despite the growth in demand, the average selling price of the Azerbaijani aluminum was only $ 1,465, or about 25-30% below the world index. The reason for this discrepancy is unknown. Azerbaijan exported 97.7% of its aluminum to Turkey.

According to the State Customs Committee, the raw material (alumina) for aluminum production is purchased in the United States (9,987 tons), Brazil (20,411 tons), Venezuela (10,501 tons) and Jamaica (27,663 tons) and costs an average of $ 418.8 per ton. Earlier alumina to meet the needs of the enterprise was produced in Ganja by the alumina plant of Azeraluminium.

In general, the foreign trade turnover in the segment of aluminum was positive for Azerbaijan by $ 30 million, amounting to $ 143.4 million. At the same time, Azerbaijan exports raw materials and purchases generally more expensive finished aluminum products.

Note that aluminum prices are unstable again this year and there is a decrease in prices. As of 27 February at the London Metal Exchange (LME) the metal per ton was offered at $ 1,794.

In 2011 Ganja commissioned a plant of primary aluminum with the capacity of 50 thousand tons. From May 2013 factories of the same company producing semi-finished aluminum began to operate, including continuous casting and rolling and metal processing under pressure and color. Last year Det.Al planned to put into operation the second phase of the aluminum smelter and bring the power of the enterprise to 100 thousand tons. The implementation of these plans has not been reported.

The plans of Det.Al Holding mean increasing the annual production capacity of the aluminum smelter to 200 000 tons, construction of an anode plant with the production capacity of 125,000 tons per year, etc. in the next 3 years. ----08B