Copying and distributing are prohibited without permission of the publisher
(AMM) Alcoa pushes new alumina pricing
July 14, 2010 - 23:12 GMT
Location:
NEW YORK
KEYWORDS:
Alcoa
,
alumina
Alcoa Inc. is changing the way it prices alumina as its long-term contracts come up for renewal, according to chairman and chief executive officer Klaus Kleinfeld.
The Pittsburgh-based company's long-term supply contracts had priced alumina as a percentage of exchange-traded aluminum, but as its multiyear contracts cycle through for renewal the company is pushing customers toward higher, non-LME-linked prices.
"We have changed the pricing mechanism to basically more appropriately reflect market conditions as well as underlying costs, and this has yielded a higher price per percentage of LME," Kleinfeld said during the company's second-quarter conference call.
Alcoa said repeatedly in the past that the LME-linked alumina pricing mechanism did not accurately reflect the actual cost of production.
"Over the past decade, the LME price and the cost inputs of alumina did not move in tandem. We believe that it's...
All material subject to strictly enforced copyright laws. ©
Euromoney Institutional Investor PLC.
Please log in using your online subscriber details.
Your username will be your registered email address with Metal Bulletin.
If you aren't a subscriber yet, feel free to take a seven day free trial, or subscribe using the instructions below.
Subscribe
A standard subscription include one year's worth of news and prices. You can also upgrade to the full archive and benefit from more than 13 years of intelligence. Start your subscription today.
Subscribe
Free trial
Taking a free trial will give you open access to Metal Bulletin online news, prices, archived content and email alert service for the next seven days. Start your free trial today.
Free trial