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UPDATE 1-Rusal says Trump win has buoyed aluminium market

Published 11/11/2016, 09:29 pm
Updated 11/11/2016, 09:30 pm
© Reuters.  UPDATE 1-Rusal says Trump win has buoyed aluminium market
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* Q3 EBITDA of $421 mln tops analysts' forecast of $390 mln

* Ups demand growth forecast to 5.5 pct from 5.4 pct (Adds comment on U.S. election, analyst, shares)

SYDNEY/MOSCOW, Nov 11 (Reuters) - Russia's Rusal 0486.HK beat third-quarter core earnings expectations on Friday, raised its outlook for aluminium demand and said U.S. President-elect Donald Trump's plans for infrastructure spending had buoyed metals markets.

Rusal's Hong Kong-listed shares have jumped 20 percent since Trump's victory this week.

"It's quite positive for metals," Deputy Chief Executive Oleg Mukhamedshin said regarding the impact of Trump's victory.

"We have already seen a rally in copper, aluminium. Investors are focusing on the potential increase in metals consumption," he said, in a comment sent via Rusal's press service.

Trump has said he plans to fix up U.S. inner cities and rebuild highways and infrastructure. on Friday reported third-quarter earnings before interest, taxation, depreciation and amortisation (EBITDA) of $421 million versus $420 million a year earlier.

That was above the $390 million expected by five bank analysts polled by Reuters and up from $344 million in the second quarter. also raised its forecast for 2016 global aluminium consumption growth to 5.5 percent from 5.4 percent citing demand from China, Russia and elsewhere.

"The Company remains optimistic as we approach the year-end, with aluminium consumption growing at a very healthy pace while supply remains tight," it said in a statement.

"Domestic demand for aluminium is also growing at a very healthy pace and Rusal intends to boost its domestic sales," it said.

Rusal's shares closed up 3.75 percent at HK$3.32 in Hong Kong on Friday.

They had been buoyed by expected strong third-quarter results as well as the relatively low liquidity of its stock, VTB Capital analyst Boris Sinitsyn said.

The average London Metal Exchange aluminium price CMAL3 increased by 3.2 percent to $1,621 per tonne in the third quarter. It hit an 18-month high of $1,783 a tonne this week. MET/L

Rusal was overtaken by China's Hongqiao 1378.HK as the world's top aluminium producer last year.

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