Financial Times (August 11)
Fears are growing of a meltdown in the aluminum market as Chinese output soars and, much like the oil market, supply outstrips demand. “China now accounts for more than half of global supply, up from 18 per cent in 2003 thanks to cheap power and the world’s most efficiently built smelters. Established producers from North America to Russia and the Middle East—facing the lowest prices since the financial crisis, reduced margins and profits—are anxious but do not want to cut capacity for fear of losing market share.”
Tags: Aluminum, Capacity, China, Fears, Margins, Market share, Meltdown, Middle East, North America, Oil, Output, Profits, Russia, Smelters
Business Green (April 18)
A new report from McKinsey “predicts solar power will be cost competitive with fossil fuels in hot countries within two to three years.” Capacity is likely to double within five years. The consulting firm’s report also predicts that costs will decrease 10% annually through 2020 when “costs could decline to $1 per watt peak (Wp) for a fully installed residential system.”
Tags: Capacity, Costs, Fossil fuels, McKinsey, Solar
Economist (January 13)
U.S. carmakers are bouncing back, but the Economist splashes cold water on the global outlook. Excess capacity will hamper profitability. “The car industry can produce 94m cars a year, against global demand of 64m. Unless that changes, it will never return to health.”
Tags: Automakers, Capacity, Demand
