U.S. Gulf: Price ideas for the Gulf sulfuric acid market were generally reported in the $35-$45/mt CFR range, unchanged from the previous week. Market players described interest as scant, however. “That (price) is only an indication,” said one contact. “There’s no demand for it.”
Offers from Northwest European smelters were mostly called in the $0-$5/mt FOB range, with a small number of sales expected to return a negative netback.
The Brazilian CFR market was called $35-$45/mt CFR, with Chilean price ideas noted in the $45-$60/mt CFR range.
Sources speculated that Alcoa Inc.’s Intalco aluminum smelter, located in Ferndale, Wash., may not close in June as originally expected. Along with the extended bear market for aluminum, Alcoa cited high electricity costs from the Bonneville Power Administration as a factor in the shutdown.
A new electricity agreement signed by Alcoa last week is valid through the end of June, sources said, and a longer-term deal is possible. More favorable utility costs would likely delay the facility’s closure, according to sources. The plant was originally scheduled to close in January 2016.
Metals posted a strong week on the London Metal Exchange. Aluminum, copper, nickel, lead, and zinc closed higher on March 2 compared with the week before.
Aluminum closed at $1,597.00/mt, up from $1,552.00/mt a week earlier, and copper was worth $4,780.00/mt, up from $4,585.50/mt at last report. Lead values increased to $1,795.00/mt from $1,689.50/mt, and nickel firmed to $8,760.00/mt from the prior week’s $8,520.00/mt. Zinc was up as well, closing at $1,796.50/mt, up from $1,727.00/mt the week before.