demand

Following its curtailment announcement last week, largest US aluminum producer Alcoa Inc. (AAI) reported that it has incurred a $US191 million net loss for the fourth quarter or 18 US cents a share due to falling aluminum price and high production cost.

Rio chief executive Tom Albanese says demand remains strong for minerals even though it has slowed in the past six months. He also said the company would not be hit hard.

"Supply and demand conditions point to commodities markets and prices staying strong," he said.

"While there are signs of nervousness, lack of inventory in the supply chain suggests the impact of the current economic concerns on our business will be limited, unless of course the financial markets substantially deteriorate."