

Stock image for referential purposes only
Alcoa Corporation expects alumina shipments from its Pinjarra refinery in Australia to decline by about 120,000 tonnes in the second quarter compared with the first quarter, following disruptions caused by Cyclone Narelle.
{alcircleadd}Speaking at the Wells Fargo Industrials & Materials Conference in Chicago, Alcoa Chief Financial Officer Molly Beerman said the cyclone, which struck Australia in March, disrupted liquefied natural gas supplies to the company's Pinjarra alumina refinery.
The Pinjarra facility has an annual alumina production capacity of 4.7 million tonnes.
According to Beerman, the disruption is expected to increase second-quarter production costs at the refinery by about USD 30 million.
Alcoa is also facing higher costs at its Sao Luis alumina refinery in Brazil. Beerman said the company expects an additional USD 15 million in fuel costs during the second quarter due to the ongoing conflict in the Middle East.
While the Sao Luis refinery remains profitable, Beerman said Alcoa's alumina business is currently under significant pressure.
She noted that the company's Western Australian refineries are facing challenges due to low alumina prices and lower-quality bauxite supplies.
To know the long-term bauxite market forecast, book our report: “Global Bauxite & Alumina Market Forecast to 2036: Supply–Demand, Trade Flows & Price Outlook”
"As a whole, the segment will be underwater," Beerman said.
The company is also assisting aluminium smelter customers in the Middle East by redirecting some contracted alumina shipments to alternative destinations, mainly China, because of production constraints linked to the regional conflict.
Following the comments, Alcoa's shares fell 9.5 per cent on Wednesday to USD 65.55.
Responses







