Pittsburgh-based aluminum producer Alcoa is reducing its outlook for alumina and bauxite shipments on curtailed production and falling demand.
The company expects alumina shipments to range from 13.1mn-13.3mn metric tonnes (t), down by 500,000t, according to a third quarter earnings report. The lower level is from reduced production from the company's San Ciprián refinery in Spain, which was cut to 50pc or 800,000t/yr to reduce the facility's losses tied to increased natural gas prices. Shipments are also expected to be lower from Alcoa's Australian refineries.
Bauxite shipment estimates for the year have been reduced by 1mn t to 43-44mn t on lower demand from the Australian refineries.
In the third quarter, Alcoa produced 497,000t of primary aluminum, down by 9pc from the prior year. Third-party shipments fell by 14pc to 621,000t, while the average realized aluminum metal price was up by 3pc to $3,204/t.
The company produced 3.09mn t of alumina in the quarter, down by 5pc compared to the prior year, while alumina third-party shipments fell by 7.5pc to 2.24mn t. The average realized alumina price rose by 19pc to $371/t.
Third quarter bauxite production fell by 12pc to 10.3mn t, with 91pc of shipments staying within the company.
Alcoa posted a loss of $746mn in the third quarter compared with a profit of $337mn in the same period of 2021.
