20 Mining CEOs lost their jobs in the last 18 months! What’s going on?
By Stephen Slade on Apr 08, 2013
With the worldwide selloff in commodities, speculators are short selling metals causing great turmoil in the metals and mining sectors. The depressed demand for aluminum and other basic raw materials is taking its toll on both the top and bottom lines of the major suppliers as well as the revolving door to the executive office. The LME (London Metals Ex) has recently receded to $1830/ton, down $670 from the $2500/ton level in 2011 and $3000/ton in 2008-9.
Leaders like Alcoa are focusing on fabricated, structured and specialty products that add greater value to the end users. They have tightened up their supply chain, cut production capacity by 500,000 metric tons and focus on the aspects of the business to maximize end value. The CEO of Alcoa, Klaus Kleinfeld will be driving growth by improving the portfolio of add-on products as hardware for the aerospace industry, sheet metal parts for the auto segment and specialty engineered products.
Aluminum production in China is expected to grow 9% to over 24million metric tons in 2013. Chinese suppliers are expanding rapidly with nearly two-thirds of net global capacity additions this year according to the Wall Street Journal (4/9/13 pg. C1). China already controls 40% of the aluminum market.
Source: WSJ 8Apr13, pgs B2, C1