After the steel industry, which is now selling its products at record-high prices, the time has come for those in the aluminium business to rejoice. The aluminium price, slowly rising since last year has simply soared in the last six months, surging about 30%.
The effects of the price increase on the Romanian aluminium industry, which was having a rough time two years ago, are already spectacular.
Aluminium smelter Alro Slatina has already seen both profit and revenues rise 50% in the first quarter this year. Alumina plant BBG Alum Tulcea, one step away from being closed in 2002 is getting ready to boost production capacity and could log full-year profit again this year.
The other Romanian alumina plant, Alor Oradea, held by Russian giant Russkiy Aluminium will resume production this year after an almost two-year break.
Alprom Slatina, which processes the aluminium supplied by Alro will up production from 26,000 tonnes to 36,000 tonnes this year.
"The aluminium price has gone up primarily because of the stabilisation of the United States economy and of the dollar depreciation. Also important were the speculations of the banks or investment funds on the LME," said Peter Braun, country manager for Romania of American trader Marco International, the majority shareholder of Alro and Alprom Slatina.
Marco bought the two companies in 2002, when the aluminium price was close to its all time low, $1,250/tonne, almost equal to the production price.
From that moment on, the aluminium price on the London Metal Exchange (LME) has increased by more than 40%, with the biggest rise occurring in the last six months.
The impact on Alro's financial results started to show in the first three months of this year, when the company logged about $105 million turnover, up 50% from the
