On 9/3/2012 1:22 AM, jimpdavis wrote:
I don't remember writing that rather caustic
diatribe. Or what I was
replying to.
jimpdavis wrote:
> Strategic materials my ass,
> The aluminum smelter
Are you referring to a bauxite to aluminum reduction
plant or just a
casting plant? sometimes they plants shut down simply because the
bauxite supply nearby plays out, or the power and other costs change for
the worse.
They operate in a mode also of having to have casting orders in for the
output of their operations because they can't really easily turn them
off. When they have extra metal they have hot they have to put it
somewhere, and what they used to do with it if they had to was cast it
into 50 to 100 ton pigs and ship them elsewhere. However when they
surrendered the energy that it took to keep it molten, it was a loss.
Usually they didn't use that metal once it was cooled.
I've visited both a plant in South Carolina, Alumax, and one east of
Evansville, In, Alcoa, both which still have good supplies of cheap
power and ore.
I assume even if they were to have had the situation where they don't
have direct orders and are shipping to China, the Chinese and foreign
buyers would be taking the metal from plants here, simply because we
have fairly cheap power. Indiana is coal, near fairly large open face
mines and the one in North Carolina gets about 1/2 of a hydro plant in
Georgia.
Thought I'd ask as I don't have much idea of how the west coast plants
are doing.
It could be that the plants were displaced which sucks for localities,
but hopefully it is still cheaper to process the ore here and have some
jobs, rather than shipping raw materials only and getting zippo for
loosing our natural resources.
I guess the Chinese are waking up about rare earths now and have been on
to what they have there. I know the non US members of the list probably
have different views, and am aware of all of the resource export that
goes on, especially in Africa.
I have not seen any quantitative comparison of how iron in the steel has
changed, but there are a lot of mini-mills which have replaced a lot of
the original plant complexes which went ore->steel, but I don't know
that we need them with all the recycling. Also minimills near your
location are cheaper than central plants shipping material.
This is a bit away from computers, but not so much if you also look at
how things are moving around these days with IC and hardware production.
We are well into the 10 year old rule covering a lot of equipment which
is highly integrated, and not something you get that has general purpose
parts. I'm not even sure where we are going with things in the last 10
years all starting to either be small equipment, and larger systems
being destroyed by the owners due to IP concerns and other reasons.
as things have evolved all manner of things are now pretty caught up
being commodities and subject to being moved around the world.
jim