Alcoa to Hike European Flat Aluminum Products

NEW YORK, Aug. 16 -- Alcoa Inc (AA.N: Quote) said in a letter to customers that it would increase prices for its European mill products delivered in the fourth quarter, because of rising costs, including metal premiums, alloying elements and energy costs.

The letter dated Aug. 9 from the company's European headquarters in Geneva, Switzerland -- later disseminated to the press -- said, "According to current estimates, we evaluate the impact in fourth quarter 2010 to be at a level of around 120 euro per tonne."

The letter said rapidly rising metal costs must be considered along with the exchange traded aluminum price.

Along with higher input costs, the Alcoa European Mill Products note said, prices will also reflect "very tight" aluminum supplies, but did not provide details.

The letter said Alcoa was informing customers about current circumstances affecting prices so they can be taken into consideration for commercial negotiation and contracts for fourth quarter 2010 and for 2011.

Alcoa European Mill Products manufacturers aluminum flat rolled products for the commercial vehicle, automotive, building, industrial, consumer durables and aerospace markets.