Aluminum premiums might not rise much, considering the fact that markets are still in a surplus. RUSAL expects aluminum markets to record a surplus of 373,000 tons in 2015.
US Midwest aluminum premiums have risen by $0.02 per pound, or more than 28%, since Alcoa announced production cuts.
Chinalco announced aluminum cuts of 530,000 tons in October. However, it will now be cutting production by only 150,000 tons.
Aluminum prices have been weak for most of the year. What’s worse, they have been reaching fresh 52-week lows regularly this month.
On November 24, Alcoa announced the executive management structure to be introduced following its split.
Getting power at competitive prices is key for aluminum smelters, especially when market conditions are as challenging as they currently are.
Alcoa’s stock has witnessed a decent upwards move over the last few trading sessions, gaining more than 16% since November 12.
Mining companies Barrick Gold, Newmont, AngloGold Ashanti, and GoldCorp have fallen 42%, 7.4%, 29%, and 42%, respectively, on a year-to-date basis.
The rout in precious metals prices has extended to precious metals mining companies such as Kinross Gold, Eldorado, Hecla Mining, and AngloGold Ashanti.
Platinum closed 0.67% lower on November 24, the only precious metal ending the day on a down note. Platinum settled at $841.70 an ounce, its lowest closing in almost ten years.
Gold futures for February contracts gained 0.63% on November 24. The price surge followed rising political tensions after Turkish F-16s downed a Russian Su-24 fighter jet over the Syrian border.
To show the temporary weakness at the Pueblo Viejo mine, Barrick Gold reduced its 2015 production guidance by ~2%—based on the mid-point guidance range.
Barrick Gold announced that two of the three electric motors in the oxygen plant at its Pueblo Viejo mine failed unexpectedly on November 19.
Elliott Management noted that it plans to engage in a “constructive dialogue” with Alcoa’s (AA) board regarding Alcoa’s split transaction and “additional available opportunities to maximize shareholder value.”
In its SEC regulatory filing disclosing its stake in Alcoa (AA), Elliott Management noted that it found Alcoa “dramatically undervalued by the public market.”
Elliott Management is not the only company finding value in the beleaguered commodity space. In August, Carl Icahn disclosed his 8.5% stake in Freeport-McMoRan.
Dow’s Agricultural Sciences segment contributed to 13% of its revenue and 10% its EBITDA in 2014.
Dow has significantly improved its financial performance over the last five years.
With higher operating cash flow, Dow increased its free cash flow to $2.9 billion in 2014 from $1.9 billion in 2010.
Dow has better leverage ratios than its major peers. Overall, it has significantly improved its balance sheet over the last five years.