This morning in metals news, aluminum producer Alcoa Corporation reported its fourth-quarter and full-year 2018 results, India is considering a higher iron ore import duty and Shanghai steel futures moved up.
Alcoa Reports 4Q Earnings
Pittsburgh-based aluminum producer Alcoa Corporation reported its fourth-quarter and full-year 2018 earnings this week, reporting adjusted net income of $125 million, excluding special items, for the final quarter of 2018.
The 4Q net income total was up from $119 million in the third quarter but down from $195 million in 4Q 2017.
For 2018 as a whole, the company reported adjusted net income excluding special items of $675 million, up from $563 million in 2017.
“Despite sequentially weaker commodity prices, we had a strong fourth quarter with higher profits in our Bauxite and Alumina segments,” President and CEO Roy Harvey said. “With the help of higher market prices earlier in the year, we increased annual profits, addressed liabilities, significantly strengthened our balance sheet, and began returning cash to stockholders. With markets likely to remain dynamic in 2019, we will focus on what we can control to continue improving our operations, addressing challenges with agility, and making the most of opportunities in the year ahead.”
In 2019, Alcoa projects a global aluminum deficit between 1.7 million and 2.1 million metric tons. In addition, Alcoa reported the global alumina market came in at a deficit of 0.6 million metric tons.
“In 2019, the Company expects the alumina market to move to a surplus that is projected to range between 0.2 million and 1 million metric tons, which assumes ongoing, third-party supply disruptions in the Atlantic region,” Alcoa states. “The projected alumina surplus is driven by China, where refining expansions are expected to outpace demand growth from smelting.”
India Considers Hiking Iron Ore Duty
According to a report from Creamer Media’s Mining Weekly, the Indian government is considering an increase to its iron ore import duty.
Per the report, domestic industry has lobbied the government to increase the current 2.5% duty on imported iron ore.
Shanghai Steel Picks Up
Global steel prices have lagged of late, but Thursday was a positive session for Shanghai steel futures, Reuters reported.
Per the report, the most-traded rebar contract on the SHFE ticked up 0.8%, while hot rolled coil was also up 0.8%.