Alcoa (NYSE:AA), Alumina (NYSE:AWC), Reliance (NYSE:RS), Century (NASDAQ:CENX), Kaiser (NASDAQ:KALU), along with other aluminum-exposed companies, are getting hit hard today on news oversupply could push down prices.
The aluminum industry has attempt to create a narrative of strong demand over the next decade or so, but in the short-term that probably won't be the case, and depending on economic conditions, could be under pressure in the mid-term as well.
Today's downward pressure is from the announcement premiums on shipments to Japan will probably fall in the first quarter of 2011 on oversupply in the market.
A growing number of analyst also believe pressure on pricing is a trend and not a temporary situation; bad news for an already struggling aluminum sector.
Alcoa was trading at $13.13, falling by $0.16, or 1.20 percent at 1:22 PM EST. Alumina was at $7.81, dropping $0.34, or 4.17 percent. Reliance was down to $44.37, losing $1.00, or 2.20 percent. Century was at $14.09, declining $0.35, or 2.42 percent. Kaiser plummeted to $46.60, falling $0.82, or 1.73 percent.
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