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Alcoa (AA) is downgraded to Neutral from Overweight with a $9 price target, down from $12, at...

Alcoa (AA) is downgraded to Neutral from Overweight with a $9 price target, down from $12, at J.P. Morgan, which says AA's efforts to cut costs in its upstream businesses likely will be overshadowed by persistently weak aluminum prices. Outside of a material rise in prices or significantly better investor sentiment, the firm sees few catalysts for AA shares in the near term. AA -2% premarket.
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  • Gumby
    , contributor
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    Does JP Morgan have any idea how much longer China will keep building more new smelters after closing old ones and arrive at what net gain in additional capacity toward 2020? Alcoa suggests that we will be consuming 70 million tons by 2020 and we are approaching 50 million tons by 2014 or 2015 at this rate. What about Middle East plans? everyone else appears to stay the same . Can China really increase that much by 2020? Are all those rapid growth in aluminium supply really about future CSP (concentrated solar power) which might require massive amounts of aluminium to manufacture parabolic mirrors. So the point is to produce as much aluminium cheaply as possible mostly in China ?
    3 Jul 2013, 05:28 PM Reply Like
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