Alcoa to close Warrick smelter

Alcoa has announced it will close its Warrick smelter in Indiana USA, for the loss of 269,000t and about 600 jobs.

The announcement comes just weeks after Alcoa announced that its Massena plant in New York USA would remain open. That plant got a life saving intervention from the State Government, which will remain in place another three and a half years. That intervention saved 600 jobs, according to news reports at the time.

The closure, which will be permanent, leaves Alcoa with just its Massena plant in the USA, though it has other assets in Canada. The Ferndale and Wenatchee operations were switched to curtailment a couple of months ago.

The move will likely not do too much for aluminium prices, but may boost premiums in the USA a little. Alcoa blamed low metal prices for the decision, avoiding naming China as the cause for the low prices. But unless or until we see a significant change in the supply balance out of China, that country will continue to export its surplus metal, keeping a lid on metal prices.

Alcoa also announced it will close the remaining capacity at its Point Comfort Texas alumina refinery. That move will cost about 700 jobs, and will take effect by April. The plant will be idled pending an improvement in alumina prices.