* Sees continued strong aluminium demand in 2011
* Drops plan to issue yuan bonds in HK
* No plan to invest in Glencore IPO
* 2010 net profit $2.867 bln vs forecast of $1.96 bln
* Shares up + 4 pct; outpace main index (Recasts with executive comments)
By Alison Leung
HONG KONG, March 31 (Reuters) - Russia's United Company RUSAL Plc , the world's top aluminium maker, said its 2010 net profit more than tripled, beating forecasts, and expects strong global demand for the light metal to continue this year.
RUSAL shares rose more than 4 percent to their highest level in more than a month, outperforming a 0.4 percent rise in the broader market .
"The emerging markets of China, Brazil, India and Russia will be driving the growth of aluminium consumption in 2011," RUSAL said in a statement to the Hong Kong stock exchange.
Prices for aluminium, used widely in the transport, packaging and building sectors, should remain supported by increasing demand for the metal as the global economy recovers, analysts say.
The Russian firm , also listed in Paris, forecast aluminium prices to continue to trade at the $2,500-2,600 level throughout 2011.
RUSAL said it has dropped plans to issue yuan-denominated bonds in the offshore market of Hong Kong as the cost of issuing such bonds is higher than that of U.S. dollar or rouble bonds.
It is currently preparing to issue $500 million worth of rouble bonds in April, the second tranche of a rouble bond issue plan announced in February, Oleg Mukhamedshin, a deputy CEO of RUSAL, told reporters at its results briefing.
"At the moment we are not interested in borrowing in renminbi (yuan). If you compare renminbi and U.S. dollars, the current market seems a bit expensive for us," Mukhamedshin said, adding, however that the firm might look at the possibility of issuing yuan bonds when market conditions improve.
While the offshore renminbi market in Hong Kong has been popular with issuers recently, analysts say the process for remitting yuan funds into the mainland still remains an onerous task and issuers still cannot do large deals, reducing the market's attractiveness.
CHINA DEMAND TO GROW
RUSAL posted a net profit of $2.87 billion last year, up from $821 million in 2009 and against an average forecast of $1.96 billion from 10 analysts polled by Reuters.
For the fourth quarter, RUSAL made a profit of $1.45 billion, down from $1.65 billion for October-December 2009, based on a Reuters calculation from the full-year data.
Higher aluminium prices lifted RUSAL's adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) in 2010 by 336 percent to $2.6 billion, largely in line with a consensus $2.62 billion from 10 analysts polled by Reuters.
Demand in China, the world's largest producer and consumer of aluminium, is expected to rise 12 percent this year, higher than an estimated 8 percent increase in global consumption, RUSAL said.
It said the average aluminium price on the London Metal Exchange rose 30.3 percent last year from 2009 and the average price of alumina, the key material for aluminium production, also gained 36.5 last year.
However, rival Aluminum Corp of China Ltd (Chalco) , which returned to the black in the fourth quarter, cautioned earlier this month that the sector faced headwinds in China from high costs and excess capacity.
RUSAL has said it planned to increase aluminium output by 2 percent in 2011 and lift alumina production by 8 percent.
Analysts said RUSAL's net income had been volatile because of the impact from the revaluation of its 25 percent stake in metals producer Norilsk Nickel . The market value of RUSAL's stake in Norilsk Nickel increased by 66.8 percent in 2010 to $11.12 billion, the company said.
RUSAL's First Deputy CEO Vladislav Soloviev said the company had no plans to invest in Glencore International AG's initial public offering.
Glencore, the world's largest commodities trader, is an indirect shareholder of RUSAL. The trader is seeking to list on the London and Hong Kong stock exchanges in an initial public offering estimated at $10 billion. (Editing by Charlie Zhu; Editing by Dhara Ranasinghe)