SOURCE: The Bedford Report

The Bedford Report

November 17, 2010 11:25 ET

China's Production Discipline Boosts Aluminum Demand

The Bedford Report Provides Analyst Research on Aluminum Corporation of China & Kaiser Aluminum

NEW YORK, NY--(Marketwire - November 17, 2010) - Aluminum prices have been up most of the month fuelled by a weak US dollar and the recent declaration by the Federal Reserve of its intention to buy $600 billion of Treasuries. Emerging markets have been a huge source of revenue as economies in China, Brazil and Russia markets 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 examines the outlook for companies in the Aluminum industry and provides research reports on Aluminum Corporation of China (NYSE: ACH) and Kaiser Aluminum Corporation (NASDAQ: KALU). Access to the full company reports can be found at:

The Chinese Government recently announced that restrictions on power that will come into place in an attempt to rein in energy consumption might also affect the market well. Aluminum plants use a massive amount of energy, and once the power cuts come into effect, the plants are expected to be limited in their ability to produce. Recent reports from Reuters indicate that China will likely curtail another 600,000 tons of aluminum smelter production before the end of 2010.

Based on the Chinese Government's measures to control property market growth, and once again become a net importer of aluminum, Aluminum Corp of China has seen a drop in domestic demand. According to a recent article in Reuters, Aluminum Corporation of China, the largest member of the Aluminum industry based on Market Cap is attempting to diversify its operations by buying into coal, rare earth, copper and iron ore assets.

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. Take a few minutes to register with us free at and get exclusive access to our numerous analyst reports and industry newsletters.

Recently Kaiser Aluminum reported that third quarter net income dropped 74 percent to $6 million, or 29 cents per share, from $23 million, or $1.14 a share, a year earlier. Net sales rose slightly to $263 million from $252 million. The company's CEO Jack Hockema warned that "We do not anticipate any meaningful restocking of service center inventories until the economic recovery is strong enough."

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