The outlook for aluminum is more positive than the steep drip in price since April may suggest. The world’s largest producers of the metal are confident that 2012 will see robust demand growth, and some have even invested millions in upgrading production capacity. Automotive production will be the main catalyst for growth.
Reuters Africa reports that Aluminum Corp of China (NYSE:ACH) said its discussions over possible development of bauxite resources in Australia had ended .
Samuel, Son & Co., Limited reports it has acquired Basic Stainless Inc. a service center operating in Minnesota and Wisconsin.
Bloomberg reports that aluminum producer United Co Rusal (HKG:0486) is in talks to develop mines in Guinea.
Aluminum industry executives sent a warning to other market leaders that unless large aluminum producers make deeper output cuts, the entire industry will likely take many years to recover from the current slump. Just 10% of world aluminum output is slated to be taken offline, and unless this number is pushed higher by more output cuts long-lasting damage to the sector is possible.
At aluminum’s current price around 90% of the world’s smelting capacity is operating at a loss, and this is forcing producers to revise production programs to cope with aluminum’s current price point.
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