At the mercy of metal

摘要

Alcan Inc's announcement this month that it will close its speciality calcined alumina plant (UPCA) in Jonquiere, Quebec, by the end of the year has come as no major surprise to the market considering today's high aluminium metal prices. The company has made no secret of the fact that the 55,000 tonnes of alumina processed each year at the plant, a small unit of Alcan's Vaudreuil Works, will now be redirected towards aluminium metal production. Rising aluminium prices have already this year helped the company, which is the world's second-largest aluminium producer, to achieve record results. Profits doubled in the first quarter of 2006 with net income rising to 453m dollars. from 218m dollars. Clearly, Alcan has decided it makes more sense to use much needed alumina to produce metal.