SEATTLE (Scrap Monster): Alcoa declared revised outlook for the current year. The company expects the total aluminum shipments to remain unchanged, compared with the prior forecast. The shipments are likely to range between 2.5 and 2.6 million metric tons during the year.
The company reduced its 2022 projection for alumina shipments to range between 13.6 and 13.8 million metric tons. The lower shipments during the initial half of the year prompted the company to reduce 0.6 million metric tons from the prior forecast.
Alcoa reduced projection for annual bauxite shipments for 2022 down by 2 million dry metric tons from the prior projection to range between 44 and 45 million dry metric tons. The downside revision is on account of prolonged disruptions in the Atlantic bauxite market and reduced demand from refineries during the initial six-month period of 2022.
During the third quarter, the company expects higher shipments from Alumina and Aluminum segments. However, these will not be adequate to offset higher energy and raw material costs. The increased shipments will lead to higher sequential profitability in the Bauxite segment. Also, the Warrick line curtailment is expected to cause negative impact of approximately $20 million to Q3 net income.
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