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Ormet losses mount in August

Keywords: Tags  Ormet, Chapter 11, London Metal Exchange, LME, aluminum prices, bankruptcy protection, Delaware, aluminum Michael Cowden


CHICAGO — Ormet Corp.’s losses mounted in August as aluminum prices on the London Metal Exchange continued to slide.

The bankrupt Hannibal, Ohio-based aluminum producer posted a net loss of $11.7 million in August vs. a $6.4-million loss in July, according to court documents filed Sept. 20 in U.S. Bankruptcy Court in Delaware.

Ormet has lost nearly $94.4 million through August, the documents said.

The company filed for Chapter 11 bankruptcy protection in February, citing high power and legacy costs (amm.com, Feb. 26). Ormet has said it expects LME cash aluminum prices to improve to averages of $2,300 per tonne ($1.04 per pound) in 2014 and $2,400 per tonne ($1.09 per pound) in 2015 (amm.com, Sept. 3).

The LME’s cash primary aluminum contract ended the official session at $1,754.50 per tonne (79.6 cents per pound) Sept. 23, down roughly 1 percent from $1771.50 per tonne (80.4 cent per pound) Sept. 20 and off 17.4 percent from a 2013 high of $2,123 per tonne (96.3 cents per pound) Feb. 15.


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