uploads/2017/03/part-4-guidance-1.png

Comparing Alcoa’s 2017 Plans to Other Aluminum Producers

By

Updated

2017 plans

Previously, we saw that Alcoa (AA) and Century Aluminum (CENX) reported a yearly decline in their 2016 aluminum production. Rio Tinto (RIO) and Norsk Hydro (NHYDY) reported a yearly increase in their 2016 aluminum production. In this part, we’ll look at the 2017 guidance provided by some of the leading aluminum producers (DIA) (DOW).

Article continues below advertisement

Alcoa

Alcoa expects to ship 47.5 million bone dry metric tons–48.5 million bone dry metric tons of bauxite in 2017—compared to 45.0 million bone dry metric tons in 2016. It expects its alumina shipments to be 13.8 million metric tons–13.9 million metric tons in 2017—compared to 13.2 million metric tons in fiscal 2016. While Alcoa expects to produce more bauxite and alumina this year, the company’s aluminum shipments are expected to be stagnant. Alcoa expects to produce 2.3 million metric tons–2.4 million metric tons of aluminum in 2017—compared to 2.42 million metric tons in 2016.

Other producers

Rio Tinto expects to produce 48 million metric tons–50 million metric tons of bauxite in 2017—compared to 47.7 million metric tons in 2016. The company gave annual guidance of 8.0 million metric tons–8.2 million metric tons of alumina for 2017—compared to actual production of 8.2 million metric tons last year. Rio Tinto expects its aluminum production to be 3.5 million metric tons–3.7 million metric tons in 2017. It produced 3.6 million metric tons of aluminum last year.

Century Aluminum expects its aluminum shipments to be 740,000 metric tons in 2017—similar to its 2016 shipments.

In the next part, we’ll look at aluminum producers’ 2017 profitability

Advertisement

More From Market Realist