$13.27
-0.37 (-2.71%)
Alcoa, Inc. (AA)
CAPS Rating:
A Producer of primary aluminum, fabricated aluminum, and alumina, and is active in all major aspects of the industry: technology, mining, refining, smelting, fabricating, and recycling.
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Alcoa's Q3 was marred by low aluminum prices and excess costs, but their Q4 has been much better due to strong demand and high prices for aluminum products, and lower raw material and energy costs. One quarter does not make a company, but I think AA does have some advantages. It controlls 24% of the world's bauxite reserves, and is a major supplier for large consumers like Boeing and GM. It has expanded up the value chain, and rolls sheet for aluminum cans and casts engine blocks. This helps insulate somewhat from price fluctuations in aluminum. Global demand for aluminum is increasing. Hopefully, energy costs will continue lower.