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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding
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To: Elroy Jetson who wrote (8141)10/20/2021 4:06:11 AM
From: elmatador1 Recommendation

Recommended By
kingfisher

   of 13799
 
The geography of energy consumption is changing. This disruption is being mistaken -or being sold by the media- as an energy crisis.
And aluminum shows that. China is sending a message to the rest of the world that it will no longer do the dirty work, i.e., operate coal fired plants while the rest of the world poses as clean countries

How did it start? Aluminum smelters are usually located near a hydropower plant. The World Bank refused to finance dams in the 80s. Aluminum smelters moved to China to be supplied by coal-fired power plants.

Now the Chinese want to remove coal from their energy matrix and this consumption needs to move to other geographies.
This is only the beginning. It will accelerate. Time to think how you will make money with this disruption.
Brazil already attracting the capital from the Canadian pension funds CPPIB.
Votorantim and Canadian pension fund create R$15 billion power company
New company must be listed on the Novo Mercado; operation involves corporate reorganization of Cesp.


Companhia Brasileira de Aluminio has a producing capacity of 400,000 tonnes/year. It produces 60% of the energy in the 18 hydroelectric power plants it owns all over Brazil and has around 13,000 clients.


Are you going to buy the media hoopla and the "crisis" or are you going to make money with this change on the geography of energy consumption?
There absolutely no way the developed countries will bring back to their shores the energy-intensive industries.
It opens the opportunity to the Emerging Markets to look to their renewable potential and explore the industrial re-location.


Where the money is going to come from?


PENSION FUNDS
This is zero-interest times. These pension funds need income. They see emerging markets as the opportunity. The graph below is Canada Pension Plan Investment Board

And they are big ! The weighted average of OECD assets in private pension plans was equal to 83% of gross domestic product (GDP) in 2016 (using GDP as weights).
Basically the workers own the means of production. Marx might be thinking hard in his grave. Capitalism did not collapse but the workers own the assets.
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