With aluminum prices dip sharply, the Street’s consensus estimate for Alcoa is for a loss of 58 cents a share. The miner, which has reduced production and cut thousands of jobs to trim costs, dipped 3.2% on Monday. For full story, click here
Alcoa announced that it will suspend production at its East Plant and cut 170 jobs there. For full story, click here
Aluminum Corp of China Ltd increased its alumina prices by 4.5 percent from Wednesday as spot prices have surged 15 percent over the past week in China, the world’s top user of alumina, used for aluminium production. For full story, click here
Brazilian primary aluminum production dropped by 5.9% YoY in February 2009 to 120,600 tonnes. For full story, click here
Aluminium for delivery in three months on the London Metal Exchange fell to a low of $1,279 a tonne – the lowest level since November, 2001. Record high stocks were responsible for the overwhelming downward pressure. Aluminium LME warehouse inventories leapt by 13,125 tonnes to stand at 3.17 million tonnes, their highest ever.
Norsk Hydro said it reducing its aluminium production by another 25 percent at its Soeral smelter in Norway, effective March 1. For full story, click here
United Company Rusal, a privately held company controlled by Russian oligarch Oleg Deripaska, said that it will cut its aluminum output by 11%, or 500,000 tons annually, by April. For full story, click here
Aluminum prices are near five-year lows as orders drop from automakers, builders and appliance manufacturers. The global recession, collapsing consumer and corporate confidence and plunging demand for industrial metals have combined to drop the aluminum prices on the LME to their lowest monthly rate since April 2003.
Aluminum industry executives sent a warning to other market leaders that unless large aluminum producers make deeper output cuts, the entire industry will likely take many years to recover from the current slump. Just 10% of world aluminum output is slated to be taken offline, and unless this number is pushed higher by more output cuts long-lasting damage to the sector is possible.
The price of aluminum has slumped some 50 percent since peaking at $3,380 per tonne last July as the global economic downturn has hit demand for the metal. To kick off 2009, the aluminum market received some positive news as the metal climbed to a three-week high in Shanghai trading.
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