Alcoa Signs Large Supply Deal With Airbus, Worth About $110M; Primary Indian Aluminum 0.7% Lower

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Alcoa Inc announced that the company “has signed a long-term deal worth about $110 million to supply titanium and aluminum parts to planemaker Airbus from its recently overhauled facility in Cleveland,” reports Reuters.

“Hit hard by weak aluminum prices, Alcoa has touted the growth of its engineered products business, which sells goods like aircraft parts and has proved more profitable in recent quarters than selling less-processed metal at rock-bottom prices.”

“The Cleveland plant will supply forgings to connect Airbus’ A320neo single-aisle jet’s wing structure to its engine, among other products. Detailed terms of the deal were not disclosed.”

“Aerospace is a key market for producers of aluminum, a metal that is light relative to its strength. Alcoa has forecast the sector will grow 9 percent to 10 percent worldwide in 2013.”

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In metal price news for aluminum…

On Friday, December 13, the day’s biggest mover was the Indian aluminum cash price, which saw a 0.7 percent decline. The 3-month price of aluminum changed direction with a 0.6 percent drop. After two days of improving prices, the metal finished at $1,804 per metric ton on the LME. The cash price of primary aluminum declined 0.5 percent on the LME to $1,759 per metric ton, after two days of improvement.

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Chinese aluminum prices closed flat for the day. The price of Chinese aluminum scrap held steady. The price of Chinese aluminum billet saw little movement. The price of Chinese aluminum bar saw essentially no change for the fifth day in a row. The cash price of Chinese aluminum remained essentially flat.