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The surge in the price of copper is making it profitable for manufacturers to retool in order to...

The surge in the price of copper is making it profitable for manufacturers to retool in order to use aluminum. Given current pricing, Alcoa (AA) estimates aluminum could end up being substituted for 20% of worldwide copper usage vs. 4-5% currently. JJC +24.4% Y/Y, JJU +3.1% Y/Y.
Comments (2)
  • bob adamson
    , contributor
    Comments (4555) | Send Message
     
    Remembering that aluminum differs from other base metals because of the high energy input for its refining (the nick-name ‘congealed energy’ comes to mind), there will be a limit to its substitution for copper in the current energy price environment.
    17 Mar 2011, 04:49 PM Reply Like
  • Emory Richey
    , contributor
    Comments (11) | Send Message
     
    AA is a top rated stock by Jim Cramer right now, and I think it is for exactly this reason. Copper is starting to be considered a 'rare-earth' and anything that can replace it will be met with higher demand going forward.
    19 Mar 2011, 12:28 AM Reply Like
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