Purcon
Aluminium procurement costs set to rise
Edited by : AL CIRCLE
1 min read
Staff in manufacturing purchasing jobs are likely to face higher bills for aluminium as one of the world's top producers forecasts prices to recover from last year's dip as suppliers cut output.
Laurent Schmitt, chief executive officer of Aluminium Bahrain BSC, the second-largest producer of the metal in the Middle East, thinks the mothballing of some plants as a result of low prices will mean global supply is cut this year.
"Less-competitive smelters will have to reduce their production capacity or even shut down," he told Bloomberg, adding that this would result in the recovery of London Metal Exchange prices.
It comes as Alcoa Inc, another major producer, said it would reduce or shut down 12 per cent of its smelting capacity as a result of the low prices.
Prices for aluminium ended the fourth quarter of 2011 down 11 per cent from the same period in 2010.
"You will see more supply coming out of the market if metal prices stay at these levels," Kuni Chen, an analyst at CRT Capital, told The Telegraph.
Laurent Schmitt, chief executive officer of Aluminium Bahrain BSC, the second-largest producer of the metal in the Middle East, thinks the mothballing of some plants as a result of low prices will mean global supply is cut this year.
"Less-competitive smelters will have to reduce their production capacity or even shut down," he told Bloomberg, adding that this would result in the recovery of London Metal Exchange prices.
It comes as Alcoa Inc, another major producer, said it would reduce or shut down 12 per cent of its smelting capacity as a result of the low prices.
Prices for aluminium ended the fourth quarter of 2011 down 11 per cent from the same period in 2010.
"You will see more supply coming out of the market if metal prices stay at these levels," Kuni Chen, an analyst at CRT Capital, told The Telegraph.
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