Global adjustments between energy prices on one side and LME prices on the other slowly but surely encourage investments despite overcapacity.

The world economy is recovering very slowly. ENAL expects Europe to succeed with the Greek rescue plan, and both the US dollar and the Euro to keep slowly losing value against gold and main commodities. The BRIC countries now carry together almost 50% of world economic growth and will keep on doing so. One can expect the present excess capacity and inventories to be absorbed, and metal demand to catch up with the present glut. This smelter belongs to a smaller but very competitive aluminum producer and has just renegotiated its energy contract: We expect investments. This metal producer finally reached – scroll down - a momentous and sophisticated power deal in a country where power shortages are a major issue. Again this will make possible badly needed investments. This major country had until now only one old smelter. Its government just approved a major greenfield project. This producer puts back into service an important alumina refinery which is another good sign. Here, it looks like one of the world leaders, desperate to reduce debt, is selling some of its most strategic businesses in terms of market niche and added value in secondary transformation. This smelter invests: it will build a new potline. This country has been working for a long time with several possible aluminum producers to build its first greenfield. Now it is getting closer. This smelter is closing down despite its high performance: In his country, energy is simply getting too costly. And this aluminum producer gets government approval to become an independent power producer…