Looks like Ormet is going the same direction as Detroit.
“Ormet Corp was beginning on Thursday to shut down half of the existing operations at its lone 260,000-tonne-per-year aluminum smelter at Hannibal, Ohio, according to documents filed a day earlier with Ohio state utility regulators,” reports Reuters.
CEO Mike Tanchuk announced the news on Ormet’s site, citing low prices and high power costs. The company declared bankruptcy back in February 2013. “The Ohio Power industrial rate, which establishes the base rate for Ormet to procure power, increased to $62.83 per megawatt hour in June from $39.66 per megawatt hour when the company’s Unique Arrangement was established in 2009 with AEP Ohio, according to Ormet’s notice.”
About Those Low Prices
With a 1.9 percent increase over the past day, the cash price of primary Indian aluminum was the biggest mover on Thursday, August 1.
The cash price of primary aluminum saw a 0.5 percent decline on the LME to $1,732 per metric ton. On the LME, the aluminum 3-month price declined 0.5 percent to $1,778 per metric ton.
After falling for two days, the Chinese aluminum cash price rose 0.3 percent. The price of Chinese aluminum scrap was essentially unchanged. The price of Chinese aluminum billet held steady. The price of Chinese aluminum bar was unchanged as well.