The Australian
US aluminium giant Alcoa slashes global output
Edited by : AL CIRCLE
1 min read
US aluminium giant Alcoa will slash 240,000 tonnes a year of global production from yet to be revealed locations as markets for the metal continue to struggle amid growing Chinese capacity and fears of a global slowdown.
The move shows the pressure aluminium producers are under amid depressed prices that mean many of the world's smelters are now unprofitable.
It could foreshadow similar moves by Rio Tinto, which became a big aluminium producer through its $US39 billion acquisition of Alcan in 2007.
Last month, BHP Billiton said it would not invest in expanding its aluminium business.
The slashed production could affect Alcoa's Australian-listed junior partner, Alumina, which yesterday had no comment.
Alumina shares slipped 2c to $1.11, their lowest closing price since March 2009.
Its sole asset is a 40 per cent cent stake in Alcoa World Alumina and Chemicals.
The move shows the pressure aluminium producers are under amid depressed prices that mean many of the world's smelters are now unprofitable.
It could foreshadow similar moves by Rio Tinto, which became a big aluminium producer through its $US39 billion acquisition of Alcan in 2007.
Last month, BHP Billiton said it would not invest in expanding its aluminium business.
The slashed production could affect Alcoa's Australian-listed junior partner, Alumina, which yesterday had no comment.
Alumina shares slipped 2c to $1.11, their lowest closing price since March 2009.
Its sole asset is a 40 per cent cent stake in Alcoa World Alumina and Chemicals.
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