US aluminum producer Alcoa has forecast double-digit increases in its annual sales in 2021 on a strengthening downstream market for alloys, billet, slab, foundry, and rod products. It expects to ship 2.7-2.8mn mt of aluminum this year.
In Q1 2021, the company’s alumina and aluminum shipments increased by 7pc and 13pc, respectively, compared to the same quarter in 2020. Alcoa did not disclose actual shipment volumes for the quarter.
The company attributed the rise to the resumption of operations at its San Ciprian smelter. This also led to a 20pc increase in revenue to $2.87bn in the quarter, compared to $2.38bn in the same period last year.
Alcoa has continued with its five-year review of aluminum capacity to remain competitive and shut down the 230,000mt Intalco smelter under this program, which has also contributed to higher profit margins. It also closed the Warrick rolling mill sale with Kaiser on Mar 31 for $670mn, which led to an increase in its final net income to $175mn, compared with $80mn in Q1 2020.