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#Bull Case
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Last edited 2 years ago

Morningstar has a 4 star rating

AWC owns 40% of Alcoa

seems probable that Russian Aluminium will be subjected to sanctions

below from The Economist

From cars to coke cans, aluminium is one of the most widely used metals. But ubiquity and profitability do not always go hand-in-hand. After seven bumper quarters Alcoa, America’s largest producer, is on Wednesday expected to report a big drop in quarterly operating profits.

Aluminium producers’ profits are shaped by supply and demand. From mid-2020 prices enjoyed a stunning rise, as energy-supply issues led to a fall in production in China, the world’s biggest producer, and later in Europe. At the same time demand rose as locked-down consumers drank more at home, boosting demand for aluminium cans, and governments planned recovery infrastructure projects. Prices peaked in March, at the highest since 1990, but have since collapsed. Chinese production is increasing just as a slowing global economy squeezes demand. As part of its sanctions for the war in Ukraine America may now increase tariffs on imports of aluminium from Russia, the third-largest producer. If that happens, expect another spike in prices, and profits for Alcoa.