Noranda may sell assets, trim benefits

Jul 24, 2013 | 06:03 PM | Michael Cowden

Tags  Noranda Aluminum Holding Corp., aluminum prices, Midwest premiums, London Metal Exchange, LME, quarterly results, new LME rules, strategic plans shutdowns

CHICAGO — Noranda Aluminum Holding Corp. is exploring reducing pension contributions and selling non-essential assets as it grapples with low London Metal Exchange aluminum prices and uncertainty about Midwest premiums, company executives said.

The Franklin, Tenn.-based aluminum producer’s comments came in response to analysts’ questions during a July 24 conference call about how Noranda might respond should low aluminum prices prove to be a sign of long-term weakness in commodity markets.

Analysts also asked how the company would respond should warehouse financing arrangements unwind in reaction to proposed new LME rules. The LME proposals aim to limit long waits for metal at warehouses, and some market sources have argued that the proposed rules could drive down Midwest premiums, which have benefitted producers in the face of low LME tags (amm.com, July 19).....





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