MARKET TALK: Alcoa Output Loss Tightens Aluminum Mkt

The loss of aluminum production from Alcoa's Tennessee smelter is not a great deal in the context of the global market but could provide a minor lift to prices given that conditions are sufficiently tight, says Victor Lazarovici at BMO Capital Markets. This would offset the impact of the lost production and incremental expenses on Alcoa's near-term results, he adds. The smelter was hit by electrical storms and one potline has, equivalent to 107,000 metric tons, been taken offline, possibly for months. LME aluminum trades at $2,820/ton, unchanged from Monday's close.