Century Aluminum acquires the Alcan Sebree Works Smelter but not without a protracted electricity contract battle that would allow Century to access globally competitive electricity prices on the open market.
Energy costs, as most aluminum watchers know has become critical as to whether or not an aluminum plant has the ability to compete both globally as well as in the domestic market against imports. In this case, the power provider, Big Rivers had hoped to increase electricity charges from $50 per megawatt-hour to $60. The State legislature got involved to decide whether smelters should have the ability to purchase electricity on the open market.
Century Aluminum prevailed in the end by securing market based electricity pricing thus agreeing to keep the operation in production.
In the meantime, the Indian aluminum cash price experienced the biggest price decline of the day on the , dropping 1.4 percent. The 3-month price of aluminum weakened by 0.3 percent on the LME, settling at $1,881 per metric ton. On the LME, the primary aluminum cash price declined 0.3 percent to $1,842 per metric ton.
Chinese aluminum closed mixed on Thursday. On the tail of a three-day flat streak, the Chinese aluminum cash price rose by 0.1 percent. The price of Chinese aluminum scrap continues hovering in the $2,150 per metric ton range for the fifth day in a row. The price of Chinese aluminum billet remained steady. The price of Chinese aluminum bar remained essentially flat.