Aluminum producer Alcoa said on Monday it will permanently close its Portovesme smelter on the Italian island of Sardinia.
The closure of the plant, which has not operated since November 2012, will reduce Alcoa’s global smelting capacity by 150,000 metric tons to 3.6 million metric tons per year. Aluminum producers are cutting production and closing plants as they struggle with low prices, high energy costs and rising production in China.
On Monday, August 25, the day’s biggest mover was the cash price of primary Indian aluminum, which saw a 1.3 percent decline to INR 124.20 ($2.05) per kilogram. The aluminum 3-month price closed at $2,061 per metric ton. Following a couple days of improvement, the metal’s price weakened by 0.4 percent on the LME. Following two days of rising prices, the primary aluminum cash price dropped 0.1 percent on the LME to $2,056 per metric ton.
Chinese aluminum prices closed flat for the day. The price of Chinese aluminum scrap held steady at CNY 12,250 ($1,984) per metric ton. For the fifth day in a row, the price of Chinese aluminum billet remained essentially flat at CNY 13,590 ($2,201) per metric ton. For the fifth consecutive day, the price of Chinese aluminum bar held flat at CNY 14,200 ($2,300) per metric ton. The Chinese aluminum cash price was unchanged at CNY 13,960 ($2,261) per metric ton.