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Rusal CEO: Only discipline will help aluminium market

Thursday, 23 Jan 2014 | 11:39 AM ET
Metal sector needs 'discipline': Rusal CEO
Thursday, 23 Jan 2014 | 11:10 AM ET
Oleg Deripaska, CEO at Rusal, explains that the aluminium sector needs supply-side "discipline" to recover.

Aluminium producers must limit supply to the market if they want to recover fully from the fallout of the financial crisis, the CEO of world's largest aluminium company told CNBC.

Rusal CEO Oleg Deripaska said: "Now we realize only discipline on the supply side… will help us to recover."

"It is interesting that finally the world recognized we should have more disciplined in terms of supply of commodities to the market. We were very optimistic in 2005, 2006 and 2007 in thinking that growth could continue for ever," he added.

Deripaska spoke to CNBC from the World Economic Forum in Davos, Switzerland.

Rusal cut its aluminium output during 2013, mothballing production at its least efficient European smelters in response to the falling price of aluminium.

The Moscow-headquartered company reported total output of 954,000 tons in the third quarter of 2013, a down 3.8 percent on the year before, and 8.4 percent on the third quarter of 2012.

Nonetheless, Rusal sees improving demand for aluminium going forward, forecasting gains of 6 percent per annum from 2013 through 2015.

"We have to be cautious about how much will be consumed over the next quarter... We need to be patient," said Deripaska.

—By CNBC's Katy Barnato. Follow her on Twitter: @KatyBarnato

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