Reuters reported that top aluminum producer United Company Rusal Plc posted a net loss for the Q1 missing analyst forecasts but it was optimistic the depressed aluminum market was starting to turn.
Rusal narrowed its loss from the previous quarter even as aluminum prices sank to five year lows, which analysts said was a good sign that earnings may be near the bottom. Russia’s Rusal also announced that it supports the Chicago-based CME Group’s new aluminum futures contract. Rusal had filed a lawsuit against the London Metal Exchange to stop it from imposing new rules designed to end long load-in and load-out queues at LME warehouses.
“UC Rusal is supportive of alternative markets for the hedging and physical delivery of aluminum, said Steve Hodgson, director of sales and marketing UC Rusale, in a statement.
With a decline of 0.9 percent to INR 105.30 ($1.76) per kilogram on Monday, May 12, the Indian aluminum cash price recorded the biggest decline of the day. The cash price of primary aluminum flattened at $1,718 following two-days of declines on the LME. The 3-month price of aluminum steadied at $1,762 per metric ton following two-days of dropping prices on the LME.
Chinese aluminum closed mixed yesterday. At CNY 13,040 ($2,094), the cash price of Chinese aluminum finished the market day up 0.9 percent per metric ton. For the fifth consecutive day, the price of Chinese aluminum scrap held flat at CNY 12,250 ($1,967) per metric ton. The price of Chinese aluminum billet was unchanged at CNY 13,590 ($2,182) per metric ton. The price of Chinese aluminum bar remained essentially flat at CNY 14,200 ($2,280) per metric ton.