1. Is primary aluminum production an attractive industry? Why or why not?
2. Using information in the case and data from the spreadsheet below, construct the industry supply curve for primary aluminum.
3. At what rate do you expect primary aluminum demand to grow over the coming years? (Be sure not to confuse total aluminum demand with primary aluminum demand; primary aluminum demand is total demand less scrap production.) What do you expect the price of aluminum to be in 5 years? in 10 years?
4. Should Alusaf build the proposed Hillside smelter? Is your recommendation particularly sensitive to any assumptions you have made?