LONDON, June 11 - Alcoa Corp ( AA ) expects shipments from
its Pinjarra alumina refinery in Australia to fall by around
120,000 metric tons in the second quarter compared to the first
quarter due to the impact of Cyclone Narelle, its chief
financial officer said.
The cyclone, which hit Australia in March, disrupted LNG
supply to the 4.7 million ton per year capacity Pinjarra plant
and increased second-quarter production costs by $30 million,
Molly Beerman told the Wells Fargo Industrials & Materials
Conference in Chicago on Wednesday.
* Alcoa ( AA ) is also expecting additional fuel costs of $15
million in the quarter at its Sao Luis alumina refinery in
Brazil due to the conflict in the Middle East, Beerman said.
* Sao Luis remains profitable, but Alcoa's ( AA ) alumina business
is "very pressured right now" and the refineries in Western
Australia are "really challenged" due to low alumina prices and
poor-quality bauxite. "So the segment as a whole will be under
water," she said.
* Alcoa ( AA ) is helping its aluminium smelter customers in the
Middle East redirect some of their contracted alumina cargoes,
primarily to China, because of their war-driven production
constraints, Beerman said.
* Alcoa's ( AA ) shares plunged 9.5% on Wednesday to $65.55.