Damage Looks Contained to Alcoa
Will someone actually sell something off of this Alcoa (AA) call?
All night last night I actually pondered this question, juxtaposed by the concept of what a horrid business aluminum has become simply because the Chinese are irrational. How irrational? The good people who run Alcoa actually have nailed it down. The Chinese are 5.7 tons irrational, meaning that's how much aluminum China shouldn't produce. That's all underwater capacity. The hope for Alcoa is that China shutters some of this capacity in 2012, maybe as much as 1.1 million tons of it. Otherwise it is hard to imagine how 2012 will be any different from the back half of 2011 when Europe really curtailed pricing power. The production cuts last week, lots of high-cost smelters in Europe, won't help demand, which is the issue. ...247 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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