Aluminum producer Alcoa will warn investors about the risks that proposed warehousing rules could pose to its business, saying they could affect its finances and the premiums it charges, according to correspondence with regulators, Reuters reported.
In a reply to queries from the Securities and Exchange Commission, Alcoa said warehousing reforms could push more aluminum onto the physical market, reducing the premiums paid by users who take physical delivery of the metal. The company added that it would raise the number of the risk factors disclosed in its future filings.
With a 1.6 percent increase over the past day, the aluminum 3-month price was the biggest mover on the LME, closing at $1,918 per metric ton on Friday, July 4. At $1,889, the primary aluminum cash price finished the market day on the LME up 1.5 percent per metric ton. The cash price of primary Indian aluminum rose 0.2 percent to INR 115.35 ($1.93) per kilogram.
Chinese aluminum prices were mixed for the day. After a 0.1 percent increase, the Chinese aluminum cash price finished the day at CNY 13,450 ($2,165) per metric ton. The price of Chinese aluminum scrap saw essentially no change for the fifth day in a row, remaining around CNY 12,250 ($1,972) per metric ton.
For the fifth consecutive day, the price of Chinese aluminum billet held flat at CNY 13,590 ($2,188) per metric ton. The price of Chinese aluminum bar held steady at CNY 14,200 ($2,286) per metric ton.