Falling Aluminum Prices And Unforgiving Electricity Prices Force Noranda Aluminum Bankruptcy

Today Noranda Aluminum, a wholly owned subsidiary of Apollo Global Management, filed for Chapter 11 bankruptcy protection. Contributing to the Noranda Aluminum's dire position is an inability to buy electricity for its New Madrid, Missouri smelter that justifies continued smelting at current aluminum prices. Aluminum is at present trading pennies above its 52 week low of 0.65 United States dollar per pound. Aluminum last traded consistently above 1 United States dollar per pound in 2011, then briefly traded around 1 dollar per pound around February to March of 2012, and since then aluminum prices have been locked into a clear, if fitful, downward trend.

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