Why Have Aluminum Prices Declined Over The Past Year?
Aluminum is a metal which has extensive industrial applications particularly in the commercial construction, automotive, aerospace, and packaging sectors. As a result, consumption of aluminum is tied to industrial growth. Weak demand for the metal as a result of subdued economic growth in China, which accounts for around half of the world’s aluminum consumption, and contraction in Chinese manufacturing activity (as indicated by Manufacturing PMI data — a composite measure of economic activity in the manufacturing sector: a PMI reading above 50 indicates growth in activity, whereas a figure below 50 indicates a contraction) has resulted in a steady decline in aluminum prices over the past year or so.
Have more questions about Alcoa? See the links below.
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- By What Percentage Can Alcoa’s Revenue & EBITDA Grow In The Next 3 Years?
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- With Alcoa Heading For A Split In 2016, What Will The Two Companies Look Like?
- Which Are The Major Growth Areas For Alcoa Over The Next Three Years?
- Alcoa’s Q1 2016 Earnings Preview: Weakness In Aluminum Prices To Negatively Impact Revenue & Earnings
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