News: Alumina shares struck with rising costs

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Yesterday shares in Alumina Ltd (ASX:AWC) fell after its Alcoa World Alumina & Chemicals partner, Alco Incorporated, reported its March-quarter results.

Analysts attributed Alumina’s fall to concerns that increasing raw material costs are impacting margins.

Alumina CEO John Bevan has told Fairfax that the pricing environment for the alumina industry continues to improve, and, that rising US alumina prices have been partially offset by higher production costs, a stronger dollar and scheduled maintenance programs.

Yesterday shares in Alumina fell 5.9 per cent, or 16 cents, to close at $2.53. 

Alumina recorded a net profit of $34.6 million in the 2010 financial year.