Thursday, May 13, 2010

Alcoa (NYSE:AA) Up on Aluminum ETFs

Alcoa (NYSE:AA) is up over 5 percent at mid-day, probably on the news concerning the introduction of several aluminum ETFs, which will change the aluminum industry as it relates to demand.

Rusal, the largest aluminum producer in the world, has had trouble supplying the amount of aluminum these ETFs need, and Alcoa is presumably next in line to give them what they need.

Expectations are aluminum prices could rise as high as $500 a metric ton as the the funds grow.

The aluminum ETFs should be launced in the latter part of 2010.

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