23 AUGUST 2012Fxstreet.com
2.1% reduction in daily aluminium production run-rates in July – Standard Bank
Edited by : AL CIRCLE
1 min read
According to data released recently by the IAI, daily aluminium production run-rates decreased 2.1% in July, compared to the record 125.5 ktpd output registered in June. It is mainly due to cutbacks in China but, as Leon Westgate from Standard Bank points out, “with seasonal factors in China likely responsible for a large proportion of the drop, the key will be how production fares over the next couple of months.”
The analyst also mentions the closing of a 244 ktpy capacity Hawesville smelter in Kentucky by Century Aluminium, due to the excessively elevated cost of energy. Mr. Westgate believes that “given the oversupplied nature of the aluminium market, further smelter shutdowns may well emerge as we head towards the year-end, though higher premiums and lower input costs look set to prolonging the current painful situation for some time yet.”
The analyst also mentions the closing of a 244 ktpy capacity Hawesville smelter in Kentucky by Century Aluminium, due to the excessively elevated cost of energy. Mr. Westgate believes that “given the oversupplied nature of the aluminium market, further smelter shutdowns may well emerge as we head towards the year-end, though higher premiums and lower input costs look set to prolonging the current painful situation for some time yet.”
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