Eluniversal.com
Reduced Venezuelan aluminum production forces authorities to adjust exports
Edited by : AL CIRCLE
1 min read
The decline in aluminum production in the Venezuelan industries located in Guayana (southern Venezuela) has obliged authorities to "adjust" aluminum supply quotas sold to multinational companies.
Venezuelan aluminum smelter CVG Alcasa's failure to deliver the product is long-standing and it is due to the industry's operational decline. In the case of Venezuelan smelter Venalum, exports were reduced because of production has plummeted in recent weeks, and high levels of iron have been found in aluminum cylinders.
A source of the industry said that in a scenario marked by heavy losses and operational problems, futures contracts are risky for state-run companies, which have already used their reserves and have committed production for several years.
Henry Arias, a union leader of Venezuela s aluminum company CVG Alcasa (Sintralcasa), said that the smelter has not complied with its international agreements in the past two years because it is operating under poor conditions. Alcasa "should deliver 5,000 tons on a monthly basis to Noble Resources and Glencore, but we are now producing 4,500 tons per month," he stated.
In 2010, 33% of Alcasa production was sold abroad, but last year the company only exported 0.6% of the smelter's production.
Venezuelan aluminum smelter CVG Alcasa's failure to deliver the product is long-standing and it is due to the industry's operational decline. In the case of Venezuelan smelter Venalum, exports were reduced because of production has plummeted in recent weeks, and high levels of iron have been found in aluminum cylinders.
A source of the industry said that in a scenario marked by heavy losses and operational problems, futures contracts are risky for state-run companies, which have already used their reserves and have committed production for several years.
Henry Arias, a union leader of Venezuela s aluminum company CVG Alcasa (Sintralcasa), said that the smelter has not complied with its international agreements in the past two years because it is operating under poor conditions. Alcasa "should deliver 5,000 tons on a monthly basis to Noble Resources and Glencore, but we are now producing 4,500 tons per month," he stated.
In 2010, 33% of Alcasa production was sold abroad, but last year the company only exported 0.6% of the smelter's production.
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