Summing up the results of the first quarter of this year, RUSAL as a result of the entry into force on capacity reduction program was forced to recognize the decline in production. In particular, primary aluminum smelting decreased to a value of 883 000 tons, which is lower than the fourth quarter of last year by 2.3%, when the volume was 904,000 tons. If we compare the data with the same period of 2013, the figures fell by 12.3% or 124 thousand tons, while in 2013 in the first quarter of the volume of production amounted to 1007 thousand tons. Reducing the rate of aluminum production growth is mainly due to the temporary stop process in the least effective points belonging to the company and located in the Urals and the European part of Russia.
The volume of produced value-added products increased to 44% of the total mass of metal, whereas last year the figures were 40% for the same period and 43% in the last quarter. From January to March this year, the price of aluminum on the London Stock Exchange continued to fall and as a result reached the lowest limit from April to June 2009. The average price of aluminum on the London Stock Exchange at the end of March this year amounted to USD 1 708 per tonne, a figure lower than the cost of the fourth quarter of last year, which equates to USD 1769 per tonne, up 3.4%. However, this negative dynamic, to some extent offset by higher premiums to the value on the LME — in the first quarter of this year, the size of premiums was equal to 336 USD / ton, while the figures were lower by 21.3% in the last quarter of last year and amounted to 227 USD / ton.
In January-March 2014 and decreased production costs per ton — by 6.6%, which amounted to 1741 USD / ton, while the figures were 1864 USD / ton of the 4th quarter of last year. In comparison with the same period cost reduction amounted to 11.7% — 1971 USD / ton. The reason for decrease was the adoption of RUSAL measures to reduce costs, as well as the fall of the ruble against USD US policy. Revenues of the first quarter of 2014 remained virtually unchanged, amounting to 2.123 billion. USD, while in the last quarter of 2013. The figures were 2.125 billion. USD. However, the decline in value of the metal on the London Stock Exchange, to some extent offset by an increase in sales volumes, the increase in premiums and improved products submitted.