Seeking Alpha
Strengthening Worldwide Demand For Aluminum Bodes Well For Alcoa
Edited by : AL CIRCLE
1 min read
Aluminum prices have been hit hard since April. The aluminum ETF ALUM fell from 16.36 on 4/11/11 to a low of 11.19 on 8/8/11. Aluminum looks poised for a rally.
The fundamentals are looking better. Just recently, RUSAL (the world's largest producer of Aluminum) CEO Oleg Deripaska, forecasted strong aluminum demand to continue and revised upwards its average aluminum price forecast for the year to $2,700 per tonne from $2,500-2,600 estimated in March. He further added that aluminum consumption in China, the world's largest producer and consumer of the metal, would rise 15 percent this year to 19 million tonnes, compared with an April forecast of 8 percent. Global demand was likely to rise 13 percent to 46 million tonnes in 2011, it said.
This bodes well for the other big players in the space such as Alcoa (AA) and Aluminum Corp of China.
The fundamentals are looking better. Just recently, RUSAL (the world's largest producer of Aluminum) CEO Oleg Deripaska, forecasted strong aluminum demand to continue and revised upwards its average aluminum price forecast for the year to $2,700 per tonne from $2,500-2,600 estimated in March. He further added that aluminum consumption in China, the world's largest producer and consumer of the metal, would rise 15 percent this year to 19 million tonnes, compared with an April forecast of 8 percent. Global demand was likely to rise 13 percent to 46 million tonnes in 2011, it said.
This bodes well for the other big players in the space such as Alcoa (AA) and Aluminum Corp of China.
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