http://seekingalpha.com
Alcoa: Aluminum Oversupply And Weak Outlook Doesn't Make The Stock A Buy
Edited by : AL CIRCLE
1 min read
Alcoa Inc (AA) continues to operate in a difficult environment. We have a neutral rating on the company, as we continue to see the aluminum market remaining oversupplied in the near future. There is little upside potential for aluminum prices given the supply and demand situation. However, we believe AA is well positioned to benefit in the long term, as costs of both aluminum and alumina decrease.
Aluminum is the second-most widely used metal in the world, after steel (iron). It is also the most abundant metallic element in the earth's crust. Building and construction, beverage cans and other packaging, and transport are the three key markets for aluminum. The transport industry, driven by an expanding auto market, is the biggest consumer of aluminum in the developed world. Aluminum helps make cars that are light, energy efficient and more environmentally-friendly. Aluminum can reduce weight by as much as 55 percent as compared to steel. However, in developing countries, the construction sector is the biggest consumer of aluminum.
Aluminum is the second-most widely used metal in the world, after steel (iron). It is also the most abundant metallic element in the earth's crust. Building and construction, beverage cans and other packaging, and transport are the three key markets for aluminum. The transport industry, driven by an expanding auto market, is the biggest consumer of aluminum in the developed world. Aluminum helps make cars that are light, energy efficient and more environmentally-friendly. Aluminum can reduce weight by as much as 55 percent as compared to steel. However, in developing countries, the construction sector is the biggest consumer of aluminum.
Previous article
Hydro Slumps on Concern Price Slide to Damp Earnings: Oslo Mover
Next articleLME aluminum should move between USD 1,920-1,950/mt: SMM Morning Review
Grow with
AL Circle
