Boeing May Win Billion Order From Aeroflot, Vedomosti Says

RUSAL sees spot aluminium at $2,400-2,500/T in 2011

RUSAL/ (URGENT)

HONG KONG, Dec 16 (Reuters) - Russia's United Company RUSAL <0486.HK>, the world's top aluminium maker, said on Thursday that it sees next year's aluminium prices at $2,400-$2,500 per tonne and global demand for the lightweight metal to rise 8 percent.

The company said the spot market price for alumina, which is used in the production of aluminium, may reach $400 per tonne in 2011 on strong demand from China and other regions, it said in a statement.

Deputy Chief Executive Oleg Mukhamedshin told reporters in November in Hong Kong that aluminium prices in 2011 would be roughly at current levels or higher, referring to a guidance of $2,400-$2,500 per tonne for the fourth quarter. (Reporting by Alison Leung; Editing by Chris Lewis)

Uralkali Said to Be Near Accord to Buy Potash Producer Silvinit

Dec. 16 (Bloomberg) -- OAO Uralkali, Russia’s biggest fertilizer company, is nearing an agreement to buy OAO Silvinit, its largest domestic competitor with a market value of $6.9 billion, according to two people with knowledge of the matter.

Uralkali won government approval to create a national champion to compete internationally, the people said, declining to be identified because the plan is confidential. The transaction is likely to be announced this month, they said.

Russian billionaire Suleiman Kerimov and partners acquired controlling stakes in Berezniki, Ural Mountains-based Uralkali and Silvinit between June and August and have been seeking to merge the two. The combined group would account for 17 percent of the world’s potash output, making it the second-largest producer after Canada’s Potash Corp. of Saskatchewan Inc., according to Fertecon Ltd., a U.K.-based industry consultant.

Alexey Sotskov, a spokesman for Uralkali in Moscow, and Anton Subbotin, representing Silvinit, declined to comment. Dmitry Peskov, a spokesman for Prime Minister Vladimir Putin, said the premier is “informed about the ongoing merger” and declined to comment on any government approval.

The world’s eight largest potash miners, whose market control already exceeds that of oil cartel OPEC, have been seeking to tighten their grip on prices of the crop nutrient. BHP Billiton Ltd. last month scrapped a $40 billion bid for Potash Corp. following opposition from Canada’s lawmakers.

Price Gains

With the global population adding 75 million people a year, food demand is set to put further strain on crops, increasing the need for fertilizer. Consolidation among producers of potash, a form of potassium used to boost yields by helping plants withstand dry soil, has caused concern in countries such as India, the biggest importer last year, that prices will rise.

A fivefold surge in potash prices over 2007-2008 led to at least eight class-action claims in the U.S. over alleged collusion, a charge the producers denied. Potash was among the last commodities to plunge in the global recession as suppliers cut output to prop up prices. Potash Corp. used a third of its capacity last year, while none of its seven largest rivals used more than 80 percent, Fertecon and Potash Corp. data show.

Kerimov directly owns 25 percent of Uralkali through his Kaliha Finance Ltd. holding company, and together with partners controls 53 percent, Uralkali said in June.

The billionaire owns 25 percent of Silvinit, according to newspaper Vedomosti. His control expands to 69 percent when accounting for the 44 percent stake acquired by his partners in August, a person familiar with the purchase said at the time.

To contact the reporters on this story: Ilya Khrennikov in Moscow at ikhrennikov@bloomberg.net; Ilya Arkhipov in Moscow at iarkhipov@bloomberg.net.

To contact the editor responsible for this story: Amanda Jordan at ajordan11@bloomberg.net.

Last Updated: December 15, 2010 16:00 EST