22 JANUARY 2014AlCircle.com
Alcoa surges on hopes for global aluminium sector
Edited by : AL CIRCLE
1 min read
After Alcoa stocks have been upgraded by JPMorgan in November to ‘overweight’ on the prospect of a tight global aluminium market in near future, the shares of Alcoa have been moving at their fastest speed.
New York- based analyst Michael Gambardella has pulled up the earnings forecast for the year to 78 cents per share, almost double the earlier projection, due to the rising price of bauxite in China. Alcoa has been aggressively involved into capacity cut over the last year to keep the aluminium price stable.
“While LME aluminium prices have remained relatively flat despite the tightening physical market, regional premiums have been escalating rapidly over the past several weeks,” Mr Gambardella said.
The company’s stock reached $12.13, an increase of 6.8 per cent and its highest level since September 2011.
Global commodity research team of JPMorgan has cut its estimate for this year’s primary aluminum supply surplus by 46 percent to 435,000 tons on 17th Jan, expecting reduced exports of aluminium from China.
New York- based analyst Michael Gambardella has pulled up the earnings forecast for the year to 78 cents per share, almost double the earlier projection, due to the rising price of bauxite in China. Alcoa has been aggressively involved into capacity cut over the last year to keep the aluminium price stable.
“While LME aluminium prices have remained relatively flat despite the tightening physical market, regional premiums have been escalating rapidly over the past several weeks,” Mr Gambardella said.
The company’s stock reached $12.13, an increase of 6.8 per cent and its highest level since September 2011.
Global commodity research team of JPMorgan has cut its estimate for this year’s primary aluminum supply surplus by 46 percent to 435,000 tons on 17th Jan, expecting reduced exports of aluminium from China.
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