NEW YORK, NY--(Marketwire - January 17, 2011) - Aluminum prices have surged close to 40 percent over the last six months, fuelled by a weak US dollar and a recent declaration by the Federal Reserve to buy $600 billion of Treasuries. Strong demand from emerging markets should keep aluminum prices rising for at least the early part of 2011. 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 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.
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.
Last week industry giant Alcoa unofficially kicked off earnings season. The Pittsburgh based company reported a fourth quarter profit of $258 million or 24 cents a share, compared with a year earlier loss of $277 million, or 28 cents a share. Revenues grew around 4 percent to $5.65 billion as a result of higher aluminum prices.
Alcoa's Chief Executive, Klaus Kleinfeld, raised his projection of the growth rate for global aluminum demand to 12 percent, compared to projections of 13% made last year. China's aluminum demand is expected to grow by approximately 15 percent in 2011 after skyrocketing more than 20 percent last year.
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