CHICAGO Rio Tinto Alcan Inc. plans to increase base prices on 6063 extrusion billet by 2 cents per pound on new business placed for shipment by Jan. 1, it said in a letter to customers.
The Montreal-based aluminum producer also said adjustments will be made to some freight, cut length and billet alloy premiums, primarily for 1000- and 3000-series material.
In addition, Rio Tinto Alcan plans to boost premiums on small-diameter billetwith a diameter of 6 inches or lessbecause of a "new business model" at its casthouse in Shawinigan, Quebec.
The casthouse, which makes small-diameter billet, is expected to continue operating despite Rio Tinto Alcan announcing that its Shawinigan smelter will be shut down. Instead of receiving liquid metal from a smelter, the facility will operate as a remelter (amm.com, Aug. 20).