Yesterday, European Commission officially proposed cutting the aluminium duty by half from 6% to 3% effective from 1 January 2007 and further cut to 0% starting from 2009. The decision is yet to be approved by the EU member countries, which could take several weeks.
Our view: The decrease of duties from 6% to 3% was expected and is already in our forecasts for Kety. Full duties abandoning is going have a positive impact on our long term forecasts. The news out during the day yesterday had a very positive trading impact.