Moody’s, the credit rating agency, downgraded the debt of one of the world’s biggest aluminum producers Alcoa to junk status.
The problem, of course, is that the company can’t make the money it wants to on such low aluminum prices. The company said ” that the downgrade was ‘a greater reflection of macroeconomic conditions and the volatility of metal prices than a true statement of the financial and operating strength of Alcoa,'” according to the Financial Times.
Commodity price volatility strikes yet again.
The aluminum prices on our daily index did not do all that great today…
But on the LME, the cash price of primary aluminum fell 0.4 percent to $1,808 per metric ton. The aluminum 3-month price saw a 0.2 percent decline on the LME to $1,844 per metric ton.
Chinese aluminum closed mixed yesterday. Closing out a three-day flat streak, the Chinese aluminum cash price moved up 0.1 percent. The price of Chinese aluminum scrap was essentially unchanged. The price of Chinese aluminum billet remained essentially flat. The price of Chinese aluminum bar was unchanged as well.