Kaiser Aluminum will not restart idled U.S. Northwest aluminum smelter capacity next month because of weak aluminum prices.
``Unfortunately, continued declines in already weak metal prices have forced us to make this decision,'' said Raymond Milchovich, Kaiser CEO. ``Smelter restarts do not currently make economic sense for Kaiser.''
Kaiser, with 273,000 metric tons idled in the Northwest, is looking for opportunities to restart but cannot predict when.
A structural power shortage in California and severe drought conditions in the U.S. Northwest had forced Bonneville Power Administration (BPA) to slash demand for its electricity. Portland, Oregon-based BPA had asked aluminum producers to shut down, as one way to bring down sky-high power prices.
Under current agreements, October 1 would be the soonest any smelter could begin operating with BPA power.
Most Northwest aluminum producers signed agreements with Bonneville not to operate their smelters for anywhere from six months to two years, beginning on October 1. BPA made separate agreements with each producer.
Kaiser had been the only company not to agree to remain shut.