JEFFERIES said aluminum prices have dropped about 17% since early June, partly reflecting resumed production at Middle East smelters that boosted supply. Citing a Monday meeting with executives of a U.S. aluminum producer, the firm said producers now expect restarts of previously idled Middle East capacity to be slower as local smelters face severe economics, notably high alumina import costs. U.S. management also expects many pre-war planned capacity additions in the Middle East will be harder

JEFFERIES said aluminum prices have dropped about 17% since early June, partly reflecting resumed production at Middle East smelters that boosted supply. Citing a Monday meeting with executives of a U.S. aluminum producer, the firm said producers now expect restarts of previously idled Middle East capacity to be slower as local smelters face severe economics, notably high alumina import costs. U.S. management also expects many pre-war planned capacity additions in the Middle East will be harder to bring to market.