Lean stocks to help aluminum survival: Kaiser

Nov 21, 2012 | 01:56 PM | Suzy Waite

Tags  Kaiser Aluminum, Jack Hockema, service centers, destocking, aerospace, automotive, aluminum, MSCI Suzy Waite

NEW YORK — Lean inventories and strong end markets mean aluminum service centers and mills will survive if the economy worsens and markets tank next year, Kaiser Aluminum Corp. president, chief executive officer and chairman Jack Hockema told AMM Wednesday.

"Say the fiscal cliff isn’t resolved and we go into a (financial) crisis. ... For us, service centers and other mills, the impact won’t be nearly as severe as it is in other recessions. This is a function of lean inventories in the total supply chain," he said.

"Inventories are so low in the whole pipeline now," Hockema said. "We won’t see a 30- or 40-percent decline (like in 2008). I always worry about an economic downturn, but I’m less concerned now because inventories are so lean."....

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