ALUMINIUM CONF: Current prices are unsustainable, top executives say

Aluminium prices are unsustainable at current levels and are causing the industry to reposition through mergers and divestitures, as well as finding leaner ways to source raw materials, a panel of industry executives said.

The 25% drop in London Metal Exchange aluminium prices over the past year means that a large portion of producers are underwater, they said. Steve Hodgson, director of sales and marketing at UC Rusal, estimated that between 20% and 30% of aluminium production capacity is currently loss-making. "The current price levels are unsustainable in the long term," he told Metal Bulletin's 30th International Aluminium conference in Vancouver. "At these prices we are not seeing a great deal of new capacity being incentivised into the market either," he added, noting that from 2017 onwards, there is very little new capacity slated to...

Published

Andrea Hotter

September 22, 2015

20:20 GMT

Vancouver