However, two months later, Alcoa announced once again that it will permanently close its Warrick Operations smelter in Evansville, Indiana, before the end of the first quarter. The Warrick Smelter is the largest aluminum smelter in operation in the United States with an annual capacity of 269,000 tons.
In addition, Alcoa also said it will cut alumina production by 1 million metric tons before the end of the second quarter.
Roy Harvey, head of global primary products at Alcoa, said in a statement, "Under market challenges, these assets are not competitive."
According to the US Geological Survey, the annual production of aluminum in the United States will therefore drop to about 720,000 tons, the lowest level since at least 1950.
Alcoa expects the balance of supply and demand in the aluminum market to improve in 2016. In 2015, the spot price of aluminum in the Midwest of the United States fell by about 30%, and the alumina price index fell by about 40%.
In November, Alcoa predicted that the global aluminum supply shortage will be 360,000 tons in 2016 and the remaining 551,000 tons in 2015. It is estimated that China's aluminum supply will be over 1.7 million tons in 2016; the rest of the world is short of 2.1 million tons.
It is believed that in the case of China's aluminum market, which reduced production by about 4 million tons in 2015 and many foreign aluminum companies reduced production, Alcoa reduced its production capacity by 701,000 tons in two months, which boosted the popularity of the aluminum market in the short term. A certain supporting role.