Basic Materials Roundup: Market Talk

The latest Market Talks covering Basic Materials. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

0302 GMT – Alumina’s shares have been underperforming mostly because of concerns about a prolonged mine-plan approvals process, as well as cost pressures from mining lower-grade bauxite and having some operations running below capacity, say Morgan Stanley analysts. But they reckon the stock will bounce back on an outcome that Alumina expects by the end of 2023. In a note, the analysts say continued operational improvements should support production, while alumina prices are expected to hold steady heading into 4Q. They keep an overweight rating and target price of A$1.40 on Alumina. “Nonetheless, we are cognizant that the opportunity may appeal mostly to value funds and comes with risks, should mine plan approvals see further delays or restrictive conditions,” the analysts say. Alumina is down 4.9% at A$0.77. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)