Alcoa Corporation, the world’s eighth-largest producer of aluminium, said lower prices of ingredients they use for metal-making would eventually reduce the production costs in the second quarter of 2023, while aluminium demand would stay robust.
Favourable raw materials, substantial output volume, and lessened production cost will jointly boost Alcoa’s earnings in the second quarter, expects the Pittsburgh-based company in a statement on April 19.
Alcoa has also revealed its aluminium shipment outlook for 2023, stating that it may range between 2.5 million tonnes and 2.6 million tonnes.
Aluminium prices have increased slightly over 2 per cent in 2023, given the steady demand for the lightweight metal amid challenges like higher borrowing rates, fear of China’s slow return from the COVID-19 lockdown, and growing concerns over the anticipated sluggish economy in the United States.
Analysts at Citigroup Inc. have expressed their anticipation that aluminium prices can reach as high as $3,000 per tonne by year-end or roughly edge a hike of 20 per cent from the current levels.
In Q1 2023, Alcoa posted an unexpected adjusted loss of 23 cents per share. Analysts expected a profit of 3.1 cents per share.
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