This is something else to take note of …..
NEW YORK (AP) — Alcoa will split into two independent companies, separating its bauxite, aluminum and casting operations from its engineering, transportation and global rolled products businesses.
The metals maker has been dealing with a downturn in its smelting business because of lower aluminum prices. The split will create one company focusing on upstream products, including aluminum. The other company will focus on engineered products, which includes the automotive and aerospace segments.
Alcoa, which is based in New York and Pittsburgh, expects the split to be complete by the second half of 2016. The upstream products company will retain the Alcoa name, while no name has yet been determined for the engineered products company.
So, why are aluminum prices so low? Is it because electricity prices are lowering? Bauxite has always been in abundance and cheap. But, Alcoa knows this. Is there a new fantastic metal replacing aluminum? No? So what’s going on?
Demand, or the lack thereof, is going on. Consider all that we do with aluminum …. from the beer and pop cans we make with it, to the parts of our engines we make with them, to the rims of our cars, to the use of it to conduct our electricity ….. aluminum is everywhere! But, the price is too low to make a profit from it. Anyone who recycles aluminum can tell you the price is in the tank.
This is simply another reflection of the global economic mess we’re all in. While the media and the central bankers are trying to put a happy face on our economies, there’s simply nothing to be optimistic about, much less having anything concrete to point to say things are fine. They’re not fine! And, they’re not getting better!
But, then, an addict doesn’t get better until they admit there’s a problem.