US aluminium maker Alcoa's petroleum coke calciner in Lake Charles, Louisiana, is fully operational after being briefly idled as Hurricane Harvey disrupted operations at Gulf coast refineries and terminals.
The plant had only just restarted in June after having been idled for over a year and half because of economic conditions. Facing an oversupplied calcined coke market, Alcoa closed the facility in February 2016 and laid off 37 employees on the heels of a rotary kiln failure in December 2015. Alcoa closed, sold or idled most of its US aluminium smelting capacity in recent years after global oversupply led to weak metal prices.
But aluminium prices have risen this year following Chinese proposals to cut back outdated production, reaching the highest level since 2014 last month. The company also began restarting its Warrick Operations' smelter in Indiana in July, after idling it in March 2016 because of weak market conditions.
Alcoa forecasts Chinese aluminium demand to grow by 6.5-7pc in 2017 year on year. Global demand is expected to grow by 4.75-5.25pc in 2017 over the year prior.
The Lake Charles calciner produces calcined petroleum coke, which is used to produce carbon anodes, an essential component for aluminium production. The plant supplies calcined coke to Alcoa's smelters in Canada and Europe.
The calcined coke market has especially tightened so far this year as many Chinese calciners have been forced to curtail production to remain within stricter emissions limits.
Rain Carbon said its nearby Lake Charles calciner was fully operational on 1 September.
