Metals

Aluminum producer Alcoa Inc. (ASX:AAI) has posted a profit of US$172 million, or US15 cents per share for the third quarter due to higher volume and prices. Revenue rose 21 percent to US$6.42 billion.

Alcoa's average realised price for aluminium increased 18 percent year-over-year but was down 5 percent sequentially. The bottom line missed expectations and shares slipped to 5.2 percent to close at US$9.77 after hours.

Fortescue Metals (ASX:FMG), Australia's third biggest iron ore producer, expects 12 million tonnes raise in the present quarter after heavy rains impeded March shipments by 15.8 percent to 8.37 million tonnes. Cash production costs increased to $US 44.96 a tonne while ore prices went up eight percent to $US 162 per dry metric tonne at shipping ports.

Oz Minerals (OZM) has released information that it expects gold production to increase over the period to 2012 while production costs expected to fall due to increased production. The company's shares jumped almost 4 percent on the announcement by Terry Burgess, the Chief Executive of OZM.

The company expects gold production to rise from previous guidance of between 80,000-90,000 ounces to 110,000-120,000 ounces a year. Copper guidance over the same period was unchanged at 100,000-110,000 tonnes a year.

Spot prices for cocking coal have increased to $220 a tonne. Coking coal is a raw material for steel making. The jump in spot prices has opened up a US$13billion annual revenue gap as contract prices were set almost a year ago.

Nippon Steel from Japan have agreed to a 65% rise in the price the company will pay for iron ore in term contracts which begin effective on April 1: Which will be great for Rio Tinto and BHP. A price rise of 50% or more has been widely expected after record highs in 2007 and continuously strong Chinese demand. Traditionally, all steel mills accept whatever price is first settled by any steel mill and one of the three top miners, Brazil's Vale or Rio Tinto and BHP Billiton.

Gold and platinum prices have surged following mine closures in South Africa, a leading producer of the metals. South Africa is second to China in Global gold production and is the top producer for platinum. AngloGold, Harmony and Gold Fields suspended all their mining operations following a national electricity emergency. Mining operations suspensions follow fears of power interruptions would trap miners underground. Mine equipment problems, accidents and maintenance have contributed to a decline in production.