new alumina pricing will improve profits

http://www.azomining.com/details.asp?newsID=1628

Alcoa Inc, the world?s largest producer of alumina, has set some of its long term supply contracts using a new pricing scheme which ties the price of alumina to the aluminium metal price.

"The old system of pricing used a basket of indexes to narrow down to a spot price.

Ultimately this shift to a new pricing system will make Alcoa more profits."

from http://www.azomining.com/details.asp?newsID=1628


Now RIO confirms and opts for short term alumina pricing...
http://af.reuters.com/article/metalsNews/idAFSGE6AS01G20101129

This was all in place for AWC months ago
http://www.businessday.com.au/business/alumina-eager-to-cut-aluminium-price-link-20100810-11yad.html

Shift to spot pricing of alumina will be a catalyst for new valuations on the share price.