Finally, aluminum companies appear to be moving in the right direction to address global oversupply of the light gray metal.
According to the Wall Street Journal, Chalco, China’s largest aluminum producer, “will temporarily shut down about 9% of its output due to market conditions, according to a regulatory filing. Chalco [also known as Chinalco] will cut production by about 380,000 metric tons of aluminum, according to the Securities and Exchange Commission filing dated Wednesday…
Check back in for Stuart Burns’ analysis: What Chalco and Alcoa’s decisions mean for aluminum buyers.
“The decision comes in response to weak aluminum prices, which hit a 3 1/2 low in May, trading close to $1,800 a metric ton…Alcoa Inc. said last month it will spend 15 months reviewing possible curtailments totaling 460,000 tons, or 11% of current capacity, with a focus on its most expensive plants and those subject to the risk of rising energy or regulatory costs,” according to the WSJ.
However, aluminum prices have rebounded due to decisions such as these. Where do global aluminum prices currently stand?
Current Aluminum Prices
After a 0.7 percent increase, the primary aluminum cash price finished the day on the LME at $1,902 per metric ton. On the LME, the 3-month price of aluminum rose 0.6 percent to $1,930 per metric ton.
Chinese aluminum closed mixed yesterday. The price of Chinese aluminum billet moved up 0.7 percent. The Chinese aluminum cash price inched up 0.1 percent. The price of Chinese aluminum scrap showed little movement on Wednesday. The price of Chinese aluminum bar saw essentially no change for the fifth day in a row.