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.
