With an 8% price increase of alumina, ALUCAM has decided to raise its prices.
According to reliable sources, ALUCAM has decided to raise its prices.
The decision was made for two main reasons, according to the steel products manufacturer. The first is an increase in the price of alumina on international markets. On dedicated platforms, we learn that the price per ton of the ore used to make aluminum has increased by more than 52.5 percent in the last year, from US$1,663 on July 17, 2020, to US$2,539 on July 12, 2021.
Additional transportation costs were also incurred as a result of supply chain disruptions caused by the coronavirus pandemic, according to the company. In the short term, the company’s decision to raise prices will benefit roofing sheets made by Socatral an ALUCAM division and local businesses. Finally, Alubassa, another division of ALUCAM that specializes in the manufacture of cooking utensils, will see a price increase as a result of this increase.
Although this price increase will have an impact on retail and wholesale prices, it will aid ALUCAM in generating more revenues and rebalancing its treasury, which was hit hard in 2015 by the divestment of its strategic partner Rio Tinto Alcan. The company’s cash flow issues are so severe that it has been unable to pay its electricity bills for months.
Cameroon, which became the company’s sole shareholder in April 2021, had to assume ENEO’s electricity debts. Despite the assumption of the XAF34 billion debt, ENEO is still suing ALUCAM for XAF17.315 billion in unpaid arrears.