Norsk Hydro Sees Earnings Rise; 3-Month Price of Aluminum Declines

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Cutting costs can truly pay off… “Aluminium producer Norsk Hydro posted a bigger-than-expected jump in quarterly earnings thanks largely to cost cuts and high premiums on physical deliveries of the metal, lifting its shares as much as 7 percent on Wednesday,” reports Reuters.

With the falling aluminum benchmark prices in recent years in mind, “Norsk Hydro has responded with a plan to cut costs by $300 a tonne. Chief Executive Svein Richard Brandtzaeg said this would be completed for the aluminium smelters it fully owns by the end of 2013.”

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On Tuesday, October 22, the day’s biggest mover was the aluminum 3-month price, which saw a 2.3 percent decline on the LME to $1,810 per metric ton. Weakening prices followed two days of improvement as the primary aluminum cash price dropped 1.0 percent on the LME to $1,790 per metric ton. Following a couple days of improvement, the cash price of primary Indian aluminum fell by 0.3 percent.

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Chinese aluminum closed mixed yesterday. The price of Chinese aluminum scrap declined 1.2 percent to CNY 12,660 ($2,078) per metric ton. Following a quiet couple of days, the price of Chinese aluminum billet fell 0.3 percent on Tuesday to CNY 14,350 ($2,355) per metric ton. The Chinese aluminum cash price fell 0.3 percent to CNY 14,410 ($2,365) per metric ton. The price of Chinese aluminum bar held steady at CNY 14,200 ($2,330) per metric ton.