MARKET TALK: Rio Expects 2010 Aluminum Output Down, Mined Copper Up

14th Jul 2010 07:56

0656 GMT [Dow Jones] Rio Tinto (RIO.AU) sees 2010 aluminum production down from 3.8 million to 3.7 million tons vs April estimate, sees 2010 alumina output at 9.4 million, down from 9.6 million; 2010 mined copper up 10,000 tons on 1Q estimate at 690,000 tons, although 2010 refined production steady at 380,000 tons; iron ore unchanged at 234 million tons for year. Easing production in aluminum materials reflects 20% fall in market price of metal since April, leaving up to 40% of smelters worldwide loss-making, although Alcoa (AA) yesterday reported earnings above estimates; but Rio has previously cited expected Chinese production cuts supporting prices in 2H. Rio sees lower rain and snowfall in Quebec's Saguenay region cutting power generation, hurting electricity-hungry aluminum smelters and cutting US$100 million from expected EBITDA during 2H. Stock last at A$67.38, tad down from A$67.44 before production report but still up 1.3% for the day. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires July 14, 2010 02:56 ET (06:56 GMT)