Trade spats to curb industrial metals demand: BMO
BMO Capital Markets has lowered its demand estimates for next year on the anticipation that higher tariffs and multilateral trade friction could tamp down industrial output.
Global miner Rio Tinto said it will conduct a strategic review of its stake in New Zealand’s Aluminium Smelter (NZAS), citing weakness in the aluminium market.
The miner said it was considering all options for the site, including possible curtailment or closure. The strategic review will conclude in the first quarter of 2020.
The move comes a week after the miner downplayed its annual aluminium production guidance and flagged challenging conditions in the industry.
NZAS is a joint venture that is about 79.4% held by Rio and 20% owned by Japan’s Sumitomo Chemical Co Ltd. The site currently employs around 1000 people.
Separately, New Zealand’s Meridian Energy Ltd, which supplies electricity to the site, noted Rio’s review and said its supply contract runs to 2030.
(By Ambar Warrick; Editing by Leslie Adler and Chris Reese)
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