Alumina Ltd Says Current Alumina Pricing Must Change
June 02 2010 - 7:57PM
Dow Jones News
Alumina Ltd. (AWC.AU) Chief Executive John Bevan said Thursday
the current system of pricing alumina does not represent market
fundamentals and must change.
The alumina price is currently linked to the price of aluminum
but miners like BHP Billiton Ltd. (BHP.AU) have been arguing for a
shift to a system that reflects market clearing prices or shorter
term contracts.
Bevan said Thursday the system must change and that this would
be driven by China, which accounts for a growing share of the
global market and trades predominantly on short term or spot.
"A new pricing mechanism should evolve with more spot sales
outside China, possibly leading to a fundamentals-based alumina
price index," Bevan said in a presentation slide.
Bevan said Alumina was well placed to take advantage of
improving market conditions and expected an improving flow of
dividends from its joint venture with Alcoa Inc. (AAL.LN).
- By Alex Wilson, Dow Jones Newswires: 613-9292-2094;
alex.wilson@dowjones.com
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