For 2 years big aluminum producers such as UC Rusal, Alcoa and Rio Tinto have shut down smelters to battle a supply glut that led to lower prices. The strategy has been successful—for the most part, the Wall Street Journal reported.
This Wednesday, Alcoa, as usual the first US major company to report results for the latest quarter, is expected to post earnings of 22 cents per share, up from 11 cents a year earlier, in part because of higher prices Yet fresh weakness in aluminum prices remains a concern for Alcoa, as some 40% of the company’s sales in the second quarter of 2014 were still related to the production of aluminum and its raw material, alumina.
Dropping 1.5%, the cash price of primary Indian aluminum was the biggest mover on Monday, October 6, closing at INR 118.35 ($1.92) per kilogram. The 3-month price of aluminum rose 0.8% on the LME to $1,912 per metric ton after a two-day drop. Following a two-day drop, the primary aluminum cash price increased by 0.7% on the LME to $1,883 per metric ton.
Chinese aluminum prices closed flat for the day. The price of Chinese aluminum scrap saw little movement at CNY 12,250 ($1,974) per metric ton. The price of Chinese aluminum billet was unchanged at CNY 13,590 ($2,190) per metric ton. The price of Chinese aluminum bar remained essentially flat at CNY 14,200 ($2,289) per metric ton. The cash price of Chinese aluminum continues hovering around CNY 13,960 ($2,250) per metric ton for the fifth day in a row.