Rio Tinto Alcan may be selling an aluminum plant soon. Apparently, “a small Canadian aluminum producer is in talks to take over Rio Tinto Alcan’s aluminum casthouse in Shawinigan, Quebec, rescuing the plant from closure at the end of this year, the fund’s project leader told Reuters on Monday,” reports Reuters.
“Sotrem, a company based in Saguenay, Quebec, that makes aluminum foundry alloys and deox, a type of aluminum used to remove oxygen in steel production, is leading the deal to buy the plant, said Yvon D’Anjou, who is in charge of the project.”
“‘We expect to come to a consensus in the next few months,’ said D’Anjou.”
“He is familiar with the plant, having worked as head of business development at Alcan until 2008, he said.”
“A spokesman for Rio Tinto confirmed in an email that the company has entered exclusive negotiations for the sale of the casthouse, but did not give any further details.”
In metal price news for aluminum…
The cash price of primary Indian aluminum rose 3.0 percent on Monday, January 27, making it the day’s biggest mover. After two days of falling prices, it closed. On the LME, the primary aluminum cash price declined 0.3 percent to $1,726 per metric ton. On the LME, the aluminum 3-month price fell 0.2 percent to $1,769 per metric ton.
Chinese aluminum prices were mixed for the day. The Chinese aluminum cash price rose 0.7 percent on Monday, just off the 30-day low it hit on Thursday, January 23. The price of Chinese aluminum scrap remained essentially flat. The price of Chinese aluminum billet was unchanged. The price of Chinese aluminum bar continues to hover for the fifth day in a row.