SOURCE: The Bedford Report

The Bedford Report

October 12, 2010 08:46 ET

Chinese Power Restrictions Boost Aluminum Demand

The Bedford Report Provides Analyst Research on Alcoa and Kaiser Aluminum

NEW YORK, NY--(Marketwire - October 12, 2010) - The Aluminum Industry has begun to show signs of stability in recent months. One of the fundamental factors 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. In fact, The Chinese Government recently announced that restrictions on power that will come into place in an attempt to rein in energy consumption, may also impact 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. The Bedford Report examines the outlook for companies in the Aluminum industry and provides research reports on Alcoa, Inc. (NYSE: AA) and Kaiser Aluminum Corporation (NASDAQ: KALU). Access to the full company reports can be found at:

When industry giant Alcoa reported its much anticipated third quarter earnings last week, the company raised its 2010 global consumption forecast to a 13 per cent increase due to higher demand in China, Brazil and India. Alcoa's CEO, Klaus Kleinfeld, stated during AA's earnings call that "In countries such as China, Brazil, India and Russia, more and more people are moving into the middle class, driving (aluminum) demand." Last Thursday, Alcoa reported second quarter net income of $61 million, or 6 cents per share, compared to $77 million, or 8 cents per share, in the same period last year. Revenue rose 14.6% year-over-year to $5.3 billion.

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 for free at and get exclusive access to our numerous analyst reports and industry newsletters.

It will be interesting to see if Alcoa's industry peers such as Kaiser Aluminum can keep the bullish sentiment surrounding aluminum going. Kaiser will report earnings in a few weeks. In the previous quarter the company beat expectations with a profit of 71 cents per share -- 32 cents above the analyst consensus of 39 cents per share.

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