Alro has indicated that the aluminum market will remain under pressure through the rest of the year with the movements of LME Aluminum in Q3 2020 setting the pace for the metal’s prices. Moreover, the COVID-19 pandemic will likely continue to impact the global aluminum market at least until the end of 2020.
The Romanian aluminum maker noted that aluminum prices declined in H1 2020, putting pressure on the profitability of its operations. The ongoing weak demand has also prompted Alro to limit its primary aluminum production as well as alumina capacity to prevent oversupply.
However, the company will continue to develop its 200,000mt per year alumina tri-hydrate (ATH) plant in Sierra Leone, West Africa, the construction of which began in H2 2019, Alro indicated while reporting its H1 2020 earnings.
In the first six months of 2020, the firm’s primary aluminum output fell by 4pc to 137,163mt compared to 142,667mt in H1 2019. Alumina production dipped by 11.7pc to 202,958mt in H1 2020 from 226,679mt during the first six months of 2019. Extruded aluminum volumes declined by 5.6pc to 51,651mt from 54,575 in the same comparative periods.
Alro’s total sales in H1 2020 fell by 10.5pc to RON1.36bn ($332mn) from RON1.5bn in H1 2019. However, EBITDA for this period surged 82pc to RON430mn, compared to RON235mn in the prior-year period.
($1 = RON4.10)