U.S. aluminum company Alcoa Inc. announced that it is laying off about 275 workers at its Quebec smelter in Becancour after the union refused to cut workers’ hours to help trim costs. For full story, click here
The Chinese government has chosen 15 aluminum producers to start direct power supply business, in a bid to further cut their costs. For full story, click here
If there was anyone who had reason to celebrate the failed BHP takeover of Rio Tinto, it would be China, and more specifically Chinese smelters. Last February, Aluminum Corp. of China together with Alcoa, paid $14.1billion for a 12% stake in Rio-Tinto’s London listed shares. Conspiracy theorists said the move was engineered by Beijing.
The precipitous drop in commodity prices is putting companies under pressure, particularly feeling the squeeze are oil and metal mining companies. To be optimistic we must note that even though the current conditions are dire, the seeds are being sowed for another big rally in the metals.
The preparations for the 2008 Summer Olympics in Beijing, China, have impacted commodity spot prices worldwide: aluminum consumption in China is at near-record heights, and continues to surge.
China’s Nonferrous Metals Industry Association said: China’s top 20 aluminum smelters, the largest in the world, have cut production by more than 350,000 metric tons on an annual basis as part of a July agreement to reduce energy consumption and boost prices. For full story, click here
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