ArmInfo. The Armenal factory in Yerevan in the first quarter of 2020 produced the largest volume of foil among the RUSAL foil rolling plants. This is evidenced by the results of the company's production activities in the first quarter of this year.
According to RUSAL, in the reporting period, the Armenal plant produced 8.9 thousand tons of products, which is 17.1% more than in Q1 2019 and 21.8% - than in the Q4. In general, in Q1 2020, RUSAL's foil rolling plants produced 25.0 thousand tons of products, which is 5.5% more than the volume of the first quarter of the previous year and 1.4% more than in the fourth quarter of 2019. The plants SAYANAL, Ural Foil and Sayan Foil during the reporting period produced 8.6 thousand tons, 6.3 thousand tons and 1.2 thousand tons, respectively. According to the company's message, aluminum production increased by 1.3% compared to the same period last year, up to 940 thousand tons. Alumina production increased by 4.2%, to 2.013 million tons, bauxite production decreased by 6.6%, to 3.577 million tons, nepheline ore - increased by 7.3%, to 1.083 million tons.
Sales of aluminum increased by 2% and amounted to 914 thousand tons. In the 1st quarter of 2020, the average selling price of aluminum decreased by 0.5% compared to the previous quarter - up to USD 1,864 per ton. According to company experts, the outbreak of COVID-19 completely changed the market outlook for 2020. The rapid spread of the virus in Europe, North America, India and Russia will lead to a deterioration in key parameters of the aluminum market in 2020. At the same time, the packaging segment is growing due to the ongoing process of replacing plastic containers with aluminum and additional demand that arose in response to changes in consumer behavior during the quarantine period.
Commenting on the results of the first quarter of 2020, RUSAL CEO Evgeny Nikitin said: "Despite the economic challenges of the first three months of this year, RUSAL completed the reporting period with good operational results due to professional work and flexibility in decision-making by the company's management. The RUSAL economic model has proved its effectiveness and adaptability during periods of market volatility. RUSAL has one of the lowest production costs per tonne of products in the industry, which gives us certain advantages to the current unpredictable market conditions.
In addition the company did not have to suspend production, we were among the first to introduce the necessary measures to prevent the spread of coronavirus in order to protect employees while maintaining production. Our approach to doing business allows us to focus on our obligations to customers without jeopardizing the health and safety of staff>.
