16 JANUARY 2015Topnews.net.nz
Estimates of aluminium price of Alcoa Inc. ‘Similar’ to present levels
Edited by : AL CIRCLE
1 min read
On Monday, William Oplinger, the Chief Financial Officer of Alcoa Inc. said that the company has used an aluminium price which also includes the benchmark futures and also the regional premiums which are comparable to present level for its forecast for 2015 of $500 million.
However, while announcing the fourth quarter reports Oplinger did not mention the aluminium price which the company used in its projects for 2015. He however mentioned that those were "similar to the market situation that we have today."
His remarks will possibly start a debate over the issues of physical premiums that are paid according to the futures even for physical delivery.
The Australian bank said "with the Chinese surplus expected to slightly widen" it also expects that there will be a trivial aluminium deficit globally in 2015.
Traders opine that the premiums will be under pressure following the first quarter due to shrinking logjams that will result from changes in LME storage rules. However, they also said that the low rate of interests as well as the extensive structure of the forward price which actually make the financing deals more beneficial will fade away.
However, while announcing the fourth quarter reports Oplinger did not mention the aluminium price which the company used in its projects for 2015. He however mentioned that those were "similar to the market situation that we have today."
His remarks will possibly start a debate over the issues of physical premiums that are paid according to the futures even for physical delivery.
The Australian bank said "with the Chinese surplus expected to slightly widen" it also expects that there will be a trivial aluminium deficit globally in 2015.
Traders opine that the premiums will be under pressure following the first quarter due to shrinking logjams that will result from changes in LME storage rules. However, they also said that the low rate of interests as well as the extensive structure of the forward price which actually make the financing deals more beneficial will fade away.
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