Azerbaijan Exports of Aluminum Much Cheaper than in World Markets (UPDATED)

2014 December 05 (Friday) 11:42:41

In the first nine months of this year, Azerbaijan exported over 37 thousand tons of unalloyed aluminum. At the same time the Ganja aluminum plant Det.Al Holding only in the third quarter exported it at a price 19% below the world index.

According to the committee, the entire volume of the raw materials, as well as last year, was delivered to Turkey. From the export of unalloyed aluminum was generated $ 55.3 million. The average price of aluminum for the year amounted to $ 1,493 / ton. Meanwhile on the London Metal Exchange (ME) aluminum price reached $ 2,114 per ton; from January to September it was in the rage 1,640-1,950 USD / ton. In the third quarter, the average export price of Azerbaijani aluminum rose to $ 1,611.

On the world market there is a positive trend in demand for aluminum and therefore prices also grow. On November 12 the price of aluminum on the contract with the delivery immediately on the LME was $ 2,060 per ton.

Armenia is also an exporter of primary aluminum. In 2013, the Armenian producers realized 25,486 tons of the metal abroad; it cost an average of $ 2,091, while Det.Al exported aluminum at $ 1567.3. The question "Why Azerbaijan exports aluminum at low prices and is the production cost-effective?" remains open.

It should be noted that the Russian RUSAL aluminum supplier sold the goods for the III quarter of 2014 at the average price of $ 1,987 per ton, which is 10.5% higher than in the previous quarter, the company said. In this case, the cost of aluminum brand RUSAL was 1,748 US dollars.

How much a ton of aluminum costs Ltd. Det.Al, the company does not report. According to the State Customs Committee, the raw material (alumina) for aluminum production is purchased in the United States (10 000 tons), Brazil (10 000 tons), Venezuela (10 500 tons) and Jamaica (12 500 tons) at a price averaged $ 412.8 per ton.

Recall that a plant for primary aluminum with a capacity of 50 000 tons was commissioned in Ganja in 2011. From May 2013 began to operate factories producing semi-finished aluminum (a plant for continuous casting and rolling and a plant for metal processing under pressure and color) of the same capacity. This year Det.Al planned to put into operation the second phase of the smelter and increase the capacity of the enterprise to 100 000 tons.

This year Det.Al unveiled plans to bring the annual capacity of the plant to 200 000 tons, construction of an anode plant with a production capacity of 125,000 tons per year, etc. in the coming 3 years.

Where Det.Al Holding Company was established and who is its owner is not disclosed. --08B--