Rio Tinto Alcan plans billet price hike

Sep 06, 2012 | 04:03 PM | Suzy Waite

Tags  Aluminum billet, spot premiums, Rio Tinto Alcan, Suzy Waite

NEW YORK — Rio Tinto Alcan will raise base prices for 6063 billet by at least 2 cents per pound next month, the Montreal-based producer said in a letter to customers.

"We are writing today to inform you that our base price for 6063 extrusion billet will increase by a minimum of 2 cents per pound on new business placed for shipment on or after Oct. 1. All contractual obligations will be honored as per existing agreements," F. James Dickson, Rio Tinto Alcan commercial director, wrote in the letter seen by AMM.

"This year saw a significant recovery to the extrusion business in North America, resulting in increased demand for extrusion billet," the Aug. 29 letter said. "As a result of improving market dynamics and to help insure the economic sustainability of Rio Tinto Alcan’s extrusion billet cast houses, major investments were made in plant equipment, tooling, environmental initiatives and safety initiatives. This modest price increase will allow us to continue to invest in the business and to deliver the products, services and research and development that the North American extrusion industry needs....