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.”
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.
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.