Aluminum giant Alcoa has increased its 2021 primary aluminum production guidance by 200,000mt to 2.9-3mn mt amid a global recovery in demand.
The company reported on Friday that it expects sales to grow in double digits and hopes to cater to the pent-up demand from projects that have been delayed due to the COVID-19 pandemic.
According to the company’s interim 2021 report, primary aluminum production declined by 4.6pc to 1.09mn mt in H1 2021, compared to 1.14mn mt in H1 2020. In Q2 2021, production fell by 6pc to 546,000mt from 581,000mt in Q2 2020. Alcoa shipped 6.3pc more aluminum in H1 2021 at 1.6mn mt, against 1.5mn mt in H1 2020. However, its Q2 shipments fell by 2.6pc to 767,000mt from 789,000mt in the prior-year period.
The company realized a 60pc increase in pricing, owing to stronger LME Aluminium prices through H1. It also sold the former Eastalco land and building for $100mn this month. In Q2 2021, Alcoa reported revenue of $2.83bn, over $2.18bn in Q2 2020. Meanwhile, adjusted EBITDA grew to $618mn in the quarter against $185mn in the prior-year period.