Aluminum producer’s squeezed

Aluminum Investing News reports aluminum prices remain low while its producers’ cutbacks have made no effect on its price.

Aluminum’s low price, in conjunction with the lack of equity to keep operations running is squandering producer’s stock value. Alcoa Shares fell to a 52-week low on Thursday on the New York Stock Exchange, down 97 cents, or 15.5 per cent, to $5.27. Kaiser Aluminum Corp was down 14 per cent at $16.95, and Century Aluminum Co lost 17 per cent at $1.24.

Chinalco’s investment into Rio is still generating a buzz.  The state owned corporation downplayed concern it will control Rio Tinto Group through a planned $19.5 billion investment, as it lobbies Australia not to block the deal on national interest grounds. The chairman of the company, Xiong Weiping, spoke in a press conference, stating that Chinalco won’t achieve “any control in any sense.” The Chairman is in Australia, meeting with Australia’s Foreign Investment Review Board. Shareholders are “concerned” about the investment, the Australian Shareholders Association has said. Beijing-based Chinalco would raise its stake in Rio to 18 per cent if all of the debt it’s buying were converted to stock.

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