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(Updates with closing share price in the second paragraph.)
Alcoa Recovery Stalls as Aluminum Drops Faster Than Costs
Oct. 6 (Bloomberg) -- Alcoa Inc., the largest U.S. aluminum producer, jumped after the price of the metal rose the most in 10 months in London trading.
Alcoa gained 51 cents, or 5.4 percent, to $9.88 as of 4:15 p.m. in New York Stock Exchange composite trading. Aluminum for delivery in three months increased as much as 3.4 percent to $2,244.75 a metric ton on the London Metal Exchange, the biggest intraday increase since Dec. 1.
Alcoa Chief Executive Officer Klaus Kleinfeld said in July global aluminum demand will increase 12 percent in 2011 and double by the end of the decade as Asian countries build more office blocks and buy more aircraft, cars and trains. Alcoa said last month it’s spending $300 million to expand its Davenport, Iowa, rolled-products plant to meet rising demand from automakers.
“They can talk about aerospace and automobiles all the time, that’s not going to be what really moves the needle,” Chuck Bradford, a metals analyst at Bradford Research Inc. in New York, said in an interview. “It’s the metal price.”
Alcoa, which is based in New York, is scheduled to publish its third-quarter earnings after the close of trading on Oct. 11. It’s traditionally the first company in the Dow Jones Industrial Average to report earnings.
--Editors: Simon Casey, Will Wade.
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