Kaiser Aluminum: Market Still Tough; Anglesey Smelter To Close
July 29 2009 - 9:09PM
Dow Jones News
Kaiser Aluminum Corp.'s (KALU) chief executive said Thursday
current market conditions remain challenging, and he expects
further destocking among aluminum consumers, but that long-term
fundamentals are still positive.
"In the near term, we expect weak demand and de-stocking for
aerospace and high strength applications to continue, particularly
for the higher value-added products," said Jack A. Hockema,
president, chief executive and chairman in Kaiser's second quarter
results statement.
The U.S.-based producer also said it still expected to close the
148,000 metric-ton Anglesey Aluminium Smelter in Wales, which it
co-owns with global miner Rio Tinto PLC (RTP), at the end of
September.
Media reports in the U.K. earlier this month said the joint
venture partners were to consider a U.K. government rescue worth
almost GBP50 million.
"We are cautiously optimistic that de-stocking trends for these
products are beginning to moderate. However, we have not yet seen
clear indications of improving demand for these applications.
Overall, in the third quarter 2009 we anticipate that the
fabricated products shipments and product mix will be comparable to
the second quarter 2009 levels," Hockema said.
-By Elisabeth Behrmann, Dow Jones Newswires;
61-2-8272-4689 elisabeth.behrmann@dowjones.com