Alcoa Reviews 14% of Aluminum CapacitySimon Casey
Alcoa Inc., the largest U.S. aluminum producer, is reviewing the future of 500,000 metric tons of high-cost aluminum-smelting capacity amid weak prices and rising supply from China.
Alcoa will consider shutting down or selling 14 percent of its global smelting capability, the New York-based company said Friday in a statement.
Also included in its review is 2.8 million tons of alumina refining capacity, or 16 percent of the company’s total. Alumina is the raw material smelted at aluminum smelters.
Aluminum for delivery in three months on the London Metal Exchange dropped to a seven-month low in January. China’s aluminum production rose 9.1 percent last year, according to data compiled by Bloomberg.
Alcoa has curtailed, closed or sold 1.3 million tons, or 31 percent, of its smelting capacity since 2007.
Alcoa rose 0.7 percent to $14.48 at the close in New York. The shares have climbed 20 percent in the past 12 months.