Chinese aluminium output cuts, meant to reduce carbon emissions, deepened a global supply deficit in the third quarter. Estimates in the market are for demand to keep outgrowing production, CBA’s chief financial officer Luciano Alves said in a press conference to discuss third-quarter earnings.
“That scenario is still valid and should not have moved prices,” Alves said. “But the coal price downswing pressured aluminium prices as well, since a huge part of the global industry is powered via thermoelectric plants. CBA itself has nothing to do with it.”
The Brazilian company uses mostly hydro power
in its aluminium production and has recently acquired wind farms to diversify its power generation, while still focusing on renewables.
“Now, with broad expectations that China will continue to limit aluminium capacity expansions, we should see support for prices,” the CFO added.
“In fact, a price drop...