2013-12-29 17:25:13 - Fast Market Research recommends "Rio Tinto Alcan: Suffering amid rising energy costs and anemic aluminum prices" from MarketLine, now available
Primary aluminum production is one of the most energy intensive industries in the world, and has suffered from anemic commodity prices and rising energy costs. Rio Tinto Alcan, the result of one of the largest ever mining mergers in 2007, has been particularly susceptible to current market conditions, having to sell assets and close smelters in order to survive.
Features and benefits
* Focuses on Rio Tinto Alcan and its difficulties, looks at why aluminum prices have remained low, and the reasons behind the global aluminum glut.
* Also provides insight into increasing energy costs and how it has impacted the primary aluminum production industry and Rio Tinto Alcan.
* Looks at the primary aluminum production situation in China.
Full Report Details
- www.fastmr.com/prod/759014_rio_tinto_alcan_suffering_amid_rising ..
Rio Tinto purchased Canadian aluminum producer Alcan in the summer of 2007 for $38.1bn to take advantage of booming aluminum prices. By 2009, prices had declined 36.9% and China had resolved to become self-sufficient in aluminum production. Rio also had to contend with rising energy costs, and had writtendown $20bn in assets by 2012.
Your key questions answered
* What were the reasons behind the Rio Tinto Alcan merger? Why did aluminum prices fall, and remain so low? What is China's role in this?
* How are rising energy costs affecting primary aluminum producers and why? What is the impact of low aluminum prices and high electricity costs?
Report Table of Contents:
WHO IS RIO TINTO ALCAN?
A result of the world's largest ever mining merger
Alcan acquisition proves a costly mistake
Power prices add to Rio's woes
WHY IS PRIMARY ALUMINUM PRODUCTION SO ENERGY INTENSIVE?
Primary aluminum production, a multi-stage process
HOW MUCH ENERGY DOES PRIMARY ALUMINUM PRODUCTION REQUIRE?
Smelter energy use
Aluminum production energy consumption continues to grow
CHINA MAIN CULPRIT IN GLOBAL ALUMINUM GLUTA TWO-FOLD PROBLEM, THE GLOBAL ALUMINUM GLUT IS THE RESULT OF THE LINGERING EFFECTS OF THE FINANCIAL CRISIS AND INCREASED PRODUCTION OUTSTRIPPING DEMAND.
China's aluminum production continues to increaseThe global aluminum supply glut is the result of a two-fold problem, initially demand for aluminum crashed as the financial crisis took hold during 2008 and new vehicle sales declined and construction projects dried up. The resulting market saw Europe and North America's primary aluminum production decline sharply during 2009 (Europe's declined 16.1% while North America's production declined 17.7%). 2012 production figures for Europe and North America are down from 2008 by 10.6% and 16% respectively, a stark example of the impact of the financial crisis, a result of depressed commodity prices and rising energy costs.
China unlikely to significantly rein in primary aluminum production
Rio Tinto Alcan's immediate future looks bleak
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