Back in the 50s and 60s things moved at a much slower pace. When a ‘market’ segment dived it took about two years to do it and there was a gentle slope down. Everyone sort of had some time to adjust, re-jig plans, and basically do what they could to prepare for the downside; except those that chose to ignore what was going on.
But here in 2011 things in the world markets happen much quicker; much much quicker.
It seems like only a few months ago I was telling friends how the price for Aluminium was skyrocketing. There was no telling where it was going to stop. After all, I explained, Aluminium is used in just about everything—computers, cars, Jets, cutlery, boats/ships, space craft, buildings, cool drink cans, beer cans (and we know how many of those get used), white goods (refrigerators, washing machines, etc.,), even flat panel screens, and much, much more. The demand for Aluminium would never stop; surely.
But stop it did. Around about July.
And then the price plummeted.
Aluminium has gone from just over US$2,600 per tonne in July to under US$2,000 a tonne in mid-December. This is a fall of around 25 percent over just five months and it is still heading in a southerly direction.
If you check page 15 of today’s (Monday the 19th December) Australian Financial Review (AFR) you will see that the graph showing the market price of Aluminium looks like a cliff face it falls off so quickly. If I was back at base I would scan it for you and post it, but I am working away so I don’t have the technology to do a scan handy.
You might ask why would I notice the price of Aluminium—well I work for a company that mines bauxite and refines Alumina so it is kind of close to home for me.
Wonder when the cut-backs will start?