Aluminum in global meltdown smelter

As all metals go through the smelters of global recession, Aluminum is no exception. It is estimated that the world aluminum consumption will plunge 7% in 2009, and sales may decline as much as 15% in global building markets and 18% to automotive customers. This comes as shocking news not only to hundreds of mining companies but to hundreds and thousands of workers who are employed in these mines. Their jobs are now at stake. Aluminum for delivery in three months has fallen 50% in the past year on the London Metal Exchange to $1,535 a tonne. If there are any indications to this slowdown, Russia and China are the best illustrations with China producing more than 13 million tonnes in 2008 giving signals of easing production already. Russia with 4.2 million annual tones of production capacity has however kept its smelters running in effect to the current political factors in concerns over the employment levels, and has not yet signaled any cease in the production. Though Russia has been hit by the economic slow-down, it has shown signs of stability as well, and being a major producer of aluminum, its workforce is actively engaged in smelting on account of no alternative employment opportunities available currently, the production shall continue appropriately. Russian Aluminum Co. or Rus-Al, the third largest aluminum producer in the world, accounting for 75% of Russia's primary aluminum output and 10% of global primary aluminum production, has construction of new smelter in Irkutsk region in line, the first batch of aluminum will be produced in November 2009 and completion of the smelter is scheduled for the fourth quarter of 2011. Alcoa Inc. (NYSE:AA) giving hints of cutting output at a Quebec smelter by 136,000 tonnes of annual output, if workers don't agree to lower wages. Alcoa spokesman Mr. Kevin Lowery was quoted as saying that if costs can’t be reduced; they will have to reduce production. Alcoa rose 3.4%, to US$9.15 in NYSE composite trading Monday. In January 2009, Rio Tinto Alcan announced that production form the Vaudreuil and Gardanne refineries would be curtailed, reducing the annual production rate of alumina by around 6%. source:www.commodityonline.com