Alcoa Inc. (NYSE:AA), Century Aluminum Company (NASDAQ:CENX), Kaiser Aluminum Corp. (NASDAQ:KALU), Noranda Aluminum Holding Corporation (NYSE:NOR) soared on the inflationary steps taken by the Federal Reserve, which will dilute the U.S. dollar even more via its $600 billion quantitative easing fiasco.
Commodities, which are denominated, for the most part, in U.S. dollars, will benefit strongly from this, and aluminum companies mentioned above, and others, will partake in that benefit.
Aluminum prices rose to their highest level since April, reaching about $2,450 a ton.
Higher commodity prices, in whatever segment they're in, can overcome a lot of resistance and operational problems, and that is the case with aluminum and aluminum producers, who are poised to move up in share price based on the expected and ongoing rise in aluminum prices.
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