China’s Aluminum Glut Will be a Big Problem for Alcoa

July 8, 2015by Hoy Grimm0

 

As the Chinese economy shifts from manufacturing to consumer consumption, it is slowing down. China accounts for half of global aluminum output so this slower grow inevitably leads to a glut of materials. Societe Generale SA calculates that global supply outstrips demand by 800,00 tons in 2015 and prices have collapsed.

 

Alcoa announced the closure of their smelter in Brazil. With a headwind this storng it’s not surpirsing tha the stock is down 30%. Their quarterly earnings announcement after the close today will be insightful.

Hoy Grimm

Leave a Reply

Your email address will not be published. Required fields are marked *

LeConte Wealth ManagementHeadquarters
We have an open door policy. Give us a visit.

703 William Blount Drive,
Maryville, TN 37801
Get in touchLeConte Social links
We participate in the online community. Connect with us.

Copyright 2021 LeConte Wealth Management LLC. All rights reserved.

Advisory Services offered through LeConte Wealth Management, LLC., An SEC Registered Investment Adviser.