Could it be that Alcoa is serious about smelter/production cuts?
Via Reuters’ Andy Home: “Alcoa announced last week that it is closing two potlines at its Baie-Comeau smelter in Quebec…105,000 tonnes of annual production…scheduled to close by August. It is the first tranche of a total 460,000 tonnes of capacity placed under review by Alcoa at the start of May.”
“Given the company said that review would take place over a 15-month period, the Canadian cuts have come sooner than most were expecting,” Home continued. “At first glance, that appears to be an important signal that key producers are serious about addressing the twin problems of oversupply and excess capacity that dog the aluminium market.”
Current Aluminum Prices:
Rising 2.1 percent to close at $1,840 per metric ton, the cash price of primary aluminum experienced the biggest change on the LME for Monday, May 20. On the LME, the aluminum 3-month price gained 1.6 percent to finish at $1,863 per metric ton.
Chinese aluminum closed mixed on Monday. The Chinese aluminum cash price finished the market day up 0.2 percent per metric ton. Chinese aluminum scrap stayed flat. For the fifth day in a row, the price of Chinese aluminum billet remained essentially flat. The price of Chinese aluminum bar was unchanged.