REFILE-UPDATE 2-Alcoa to cut capacity at two aluminum smelters in Brazil
* To cut 147,000 metric tons of capacity at Brazil smelters
* Aluminum prices rise 1.5 pct to $1,763.25/ton on LME
March 28 (Reuters) - Alcoa Inc, the biggest U.S. aluminum producer, said it would cut 147,000 metric tons of capacity at two smelters in Brazil to stem a growing global surplus that has depressed prices and made a large number of plants uncompetitive.
Benchmark aluminum prices rose about 1.5 percent to a session-high of $1,763.25 per ton on the London Metal Exchange on Friday, after Alcoa's announcement.
Since October, prices have remained under $1,800, close to or below the cost of production at a large number of plants.
Many companies, including the world's biggest aluminum producer Rusal and rival Rio Tinto Ltd, have shut plants, but big smelters in China, the world's largest producer, show no sign of cutting output.
China accounts for about 30 million of the world's 50 million tonne annual output.