Aluminium price is about 10% lower than when Rio started their strategic review but our dollar has fallen by a similar amount. 50/50 call this one.
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Aluminium price is about 10% lower than when Rio started their strategic review but our dollar has fallen by a similar amount. 50/50 call this one.
Thanks guys. I'd like a new memory bank installed.
With everybody staying home and winter approaching, there may be more power the usual being used,may be good for the power companies
From em6live link posted, daily demand seems to be at the bottom of the expected band for the last couple of days. Sticking with my 5% drop predication at least while the lockdown is in effect.
RIO's costs/price ratio really hasn't change much but their competitive environment might have. They have lost bargaining power though, lots of businesses asking for bailouts now. Why favour RIO over say AIR NZ or all the small businesses?
Predict RIO will take slightly lower transmission fees, maybe negotiate a bit of cheaper power commercially, close a pot line perhaps and punt the decision down the road for another year.
Jaa , what a good summary and conclusion.
I can't recall, but understand remediation costs of the site etc are something like $250m - so pretty grunty if accurate. Also the smelter isn't 100% Rio - Sumitomo own 20% so they would have to be on the same page.
Must imagine that Rio would have tried to hawk their 80% over recent years??
Rio trying to screw down power prices in Iceland too
Sound familiar? Rio Tinto considers shutting Iceland smelter ...www.odt.co.nz › news › world › sound-familiar-rio-tinto-considers-sh...
Yes, they are, JT. But it's a legitimate tactic to try when the price of your product is under pressure.
Obviously. Tiwai is not alone.
China is over it and their Al will be in full production ,others restricted. Pretty tough for Tiwai.
Mr Robertson announced yesterday that infrastructure projects will be key to recovery, and that housing and clean energy are specifically being looked at. That should be good news for the energy and construction sectors, though what are the chances this government will use the situation to advance their ideology. Apart from 100% chance, that is.
One silver lining is that there will not be any money left over for the expensive uneconomic clean energy infrastructure. They will try and advance their ideology I agree, but they like all socialists will come to realise that other peoples money does run out eventually.
I wonder if the smelter announcement today to close number four pot line could be read as positive for the remaining three keeping going? One would think that if the decision was going to be close the lot then why bother with just announcing one? Thoughts of others appreciated
"The strategic review will consider all options, including curtailment and closure and will be complete in the first quarter in 2020."
The above from RIO's oct announcement, note first qtr of RIO ,not our power companies.Their first qtr results last year were released on 14th april so any time up until around then im surmising , for the announcement.
Yes, I agree. Whilst the announcement was typically useless from Rio, it does mean that the close down was not a foregone conclusion prior to the COVID outbreak. Closing potline 4 is pretty minor in the big scheme of things, 50MW out of 620 means the majority of load is still there. Totally understand that the current situation means extension of the timeframe but very poor form that they didn't provide anything apart from a throwaway "still in progress" comment, but we have come to expect that from RT!
Why would they? They have control of the timing and decision making.They are making the most of their bargaining position and going to the wire to screw down more savings from the power companies, NZ govt.As Mac says a legitimate tactic.