Emerging Markets Help Ease Aluminum Supply & Demand Concerns

Aluminum prices have been up for the better half of a month fuelled by a weak US dollar and a recent declaration by the Federal Reserve to buy $600 billion of Treasuries. A recent report from that Australian Bureau of Agricultural Resource and Economics predicts that aluminum prices should surge even higher next year due to strong demand from emerging markets. While global aluminum demand is increasing, significant production growth, as well as high aluminum inventories will likely limit aluminum prices from skyrocketing. The Bedford Report examines the outlook for companies in the Aluminum industry and provides research reports on Alcoa, Inc. （NYSE: AA） and Century Aluminum Co. （NASDAQ: CENX）.

Emerging markets have been a huge source of revenue as populations and economies in China, Brazil and Russia markets have become richer leading to higher levels of building. One of the fundamental reasons for the turnaround in the aluminum industry has been the continued production discipline demonstrated by China. From 2002 to 2008, China had been a net exporter of aluminum, but has since become a net importer.

When industry giant Alcoa reported third quarter earnings, the company raised its 2010 global consumption forecast to a 13 per cent increase due to higher demand in China, Brazil and India.

The Bedford Report releases regular market updates on the aluminum industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns.

Earlier this autumn the Chinese Government announced that restrictions on power will come into place in an attempt to rein in energy consumption may also impact the market well. Aluminum plants use a massive amount of energy, and once the power cuts come into effect, the plants are expected to be limited in their ability to produce.

The Bedford Report provides Analyst Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above-mentioned publicly traded companies.