U.S. Gulf: Sources put the Gulf import market at $40-$45/mt CFR for vessels, unchanged from the prior week. Brazil was called $45-$50/mt CFR, and tons offered from smelters located in Northwest Europe ran $5-$10/mt FOB, both flat from the previous report.
Chile was called $40-$45/mt CFR based on availability from Peru.
Planned second-quarter maintenance is expected to tighten domestic supply, sources argued, potentially firming both domestic and import pricing. Recent business was noted in the $85-$95/t DEL range for the Gulf region, while material destined for the Midwest was quoted at $80-$90/t DEL. Tons sold to West Coast buyers were reported at $100-$110/t DEL.
Australia: Alcoa Inc.’s Portland, Victoria, aluminum smelter will continue operating thanks to a four-year rescue deal brokered with the state and federal governments. The agreement will provide approximately $21.2 million in federal funds. In return, Alcoa agreed to extend operations through at least 2021.
The state of Victoria will also contribute to the bailout. State officials declined to reveal an exact figure, but local reports put the total at more than $155 million.
Alcoa reportedly considered closing the facility after a power outage damaged the smelter in December, reducing production to approximately 50 percent of the plant’s 300,000 mt/y capacity. Alcoa estimated that six months of repairs are needed to return the plant to full capacity.