Rio Tinto has decided to postpone “studies related to a proposed $4 billion aluminum plant in Paraguay due to bad market conditions, putting what would be the country’s biggest-ever foreign investment in jeopardy,” Reuters.
“The plant would have been Rio Tinto’s largest worldwide, with the capacity to produce 674,000 tons a year. It had been scheduled to start operating in 2016.”
“‘This was a difficult decision to make, given that we have very much enjoyed the professionalism and collaboration of the Paraguayan authorities,’ the company’s Canadian subsidiary Rio Tinto Alcan said in a statement. ‘Having said that, we cannot avoid the reality of current market conditions.'”
In metal price news…
With a 1.3 percent increase over the past day, the aluminum 3-month price was the biggest mover on the LME, closing at $1,795 per metric ton on Tuesday, December 10. At $1,749, the cash price of primary aluminum finished the market day on the LME up 1.2 percent per metric ton. The cash price of primary Indian aluminum rose 1.1 percent.
Chinese aluminum prices closed flat for the day. Chinese aluminum scrap held its value on Tuesday. The price of Chinese aluminum billet remained essentially flat. The price of Chinese aluminum bar saw essentially no change for the fifth day in a row. The cash price of Chinese aluminum saw little change in its price yesterday.