Alcoa's Spanish Alumina Refinery Cut Production Further due to Losses Caused by Rising Natural Gas Prices

SHANGHAI, Oct 9 (SMM) - Alcoa's Spanish unit San Ciprián alumina refinery said on September 29 that it has been running at roughly half of its capacity, starting from October 1, due to losses caused by high natural gas costs. Its daily output has fallen to 2,200 mt. 

The San Ciprian alumina refinery made an initial capacity cut of 15% in July this year and announced in August that it would cut its operating capacity to 50-60% of its annual capacity of 1.6 million mt over the next two months.

Alcoa said that at current production levels, the alumina refinery would generate significantly negative profit margins, or a loss for every mt of alumina produced. The company will continue to monitor the situation and assess production based on changes in natural gas prices, with the flexibility to further adjust production.