Higher Aluminum Prices Have Helped Alcoa

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The Pittsburgh Post-Gazette has examined the reasons for Alcoa’s increasing stock price and generally good year. One of Alcoa’s biggest initiatives in recent years has been shuttering outdated, inefficient smelters and focusing on more lucrative downstream markets like aerospace and automotive.

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Just as that strategy is bearing fruit with the introduction of the aluminum-intensive Ford F-150 pickup truck and long-term supply agreements with Boeing and Pratt & Whitney, strengthening aluminum prices are making Alcoa’s aluminum production business less of a poor stepchild and more of a diamond in the rough, the P-G says.

Aluminum spot prices reached $2,100 per metric ton recently, up from as low as $1,700 earlier in the year, according to Morningstar analyst Andrew Lane.

The day’s biggest mover was the cash price of primary Indian aluminum which dropped by 0.2 percent on Monday, September 22 to close at INR 121.65 ($2.00) per kilogram. On the LME, the primary aluminum cash price held steady around $1,949 per metric ton. On the LME, the 3-month price of aluminum remained essentially flat at $1,983 per metric ton.

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Chinese aluminum prices closed flat for the day. The price of Chinese aluminum scrap held steady at CNY 12,250 ($1,990) per metric ton. For the fifth consecutive day, the price of Chinese aluminum billet held flat at CNY 13,590 ($2,207) per metric ton. The price of Chinese aluminum bar continues hovering around CNY 14,200 ($2,306) per metric ton for the fifth day in a row. For the fifth day in a row, the cash price of Chinese aluminum remained essentially flat at CNY 13,960 ($2,267) per metric ton.

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