Invest in aluminum stocks to speed up your portfolio growth, with rich dividends. First, use your stock screener to build a list of aluminum companies and choose one that fits your investment goals. Then, research the building orders for production, as well as production rates of vehicles, to gain a good understanding of how the prices of aluminum stocks are moving. Increases should benefit companies producing aluminum and aluminum products, making aluminum stocks an attractive choice for investors.
Aluminum is susceptible to changes in the residential and industrial sectors, making it easier to monitor the movements of aluminum prices compared with precious metals. While Aluminum does not possess the same appeal as Gold and Silver, it is easily tracked by its production and distribution. The massive output of aluminum-based products can be attributed to its lightweight and durability — making it 1 of the most re-useful metals in the market. Aluminum is used in the automobile, building, packaging, electronics, aerospace, and defence industries.
Why Invest in Aluminum?
The abundance of aluminum on Earth’s surface and its ability to alloy with other metals such as copper, silicon, tin, and zinc makes it a preferred commodity for electronics industries. California-based Kaiser Aluminum produces aluminum products for the aerospace, packaging, automotive, and industrial markets. While they have not profited from the aluminum spike, they may produce more aluminum products for electric vehicles as the industry grows. In addition, a French company, Constellium, makes aluminum products with high-value-added to aerospace, auto, and packaging end markets.
Alcoa produces various aluminum products from their smelting and casting operations. Alcoa also operates several energy resources that lower aluminum production costs and carbon emissions; three-quarters of its smelting fleet runs on renewable energy. Companies such as Alcoa and Norsk Hydro market lower-carbon aluminum that is smelted using renewable power.
Aluminum producers like Alcoa and Norsk Hydro, as well as components makers such as Constellium, stand to gain from Evs’ growing share. These investments further back a plan by the companies to produce the aluminum, Natur-Al, which has one of the lowest carbon footprints in the world. In addition, the expansion will allow Century Aluminum to manufacture even more low-carbon products by the time the $120-million project is completed in 2024.
Best Aluminum Stocks to Buy
According to a recent study, the aluminum alloy market is expected to grow to $150 billion by 2024. Aluminum prices are already up over 40% this year, with increased demand from sweeping stimulus measures worldwide, coupled with production cuts and disruptions at China’s highest levels. As a result, the aluminum market’s fundamentals are as strong as ever, and the aluminum stocks have rallied in the last year.
Canadian aluminum shipments fell 8.1% in May to 10,700 tonnes, and shipments for the year, 50,900 tonnes, are 5.2% lower than last year. ROLLING MEADOWS, Ill., June 18, 2007 — As demand for industrial metals has weakened, inventories of steel and aluminum products in U.S. and Canadian metals service centers declined in May by between 2% and 5% compared with April levels, according to a report on metals activity by the Metals Service Centers Institute. Aluminum trading at Shanghai Futures Exchange fell, with loan rumours dampening market confidence.
The stock fell nearly 1% to $48.07 U.S. after reports that aluminum manufacturer Alcoa may suffer from tariffs. Canadian metals companies were sideways Thursday after the Trump administration announced that it would be imposing 25% tariffs on imported steel and 10% tariffs on imported aluminum from Canada, effective at midnight. When the Trump administration originally announced it would put tariffs on imported steel and aluminum, Canada, Mexico and the European Union were granted waivers.
Pittsburgh, Pa.-based Alcoa is one of the largest alumina, aluminum and bauxite producers. Alcoa is a comprehensive aluminum manufacturer and is among the most significant global producers of bauxite, a major raw material used to manufacture aluminum. In 2020, the world’s largest aluminum producer extracted more than 20 million bauxite from its mines and produced more than 21 million tons of alumina and aluminum products. The third-largest aluminum producer (and largest producer outside China), Rusal in Russia, has about 3.8 million tons of aluminum annually.
Novelis is a leading producer of flat-rolled aluminum products and the world’s largest aluminum recycler. Formerly a part of aluminum manufacturer Alcoa, Pittsburgh-based Arconic produces sheet aluminum and plates used in automobiles, aircraft, and industrial applications.
Together, members of the Institute’s metal service centers represent the largest single group of purchasers of metals in North America, accumulating over 65 million tons of steel, aluminum, and other metals annually, with some 300,000 manufacturers and fabricators serving as customers. The copper industry is composed of companies involved in the exploration, mining, development, and manufacture of copper, one of the most widely used metals. PowerShares DB Base Metals is a collection of aluminum, copper, and zinc futures, all in a single investment basket. Using the GlobalAnalyst product, investors can search securities by region, country, industry, market cap, and currency to discover undervalued securities globally.
Consider mining stocks such as Century Aluminum, Australian company Rio Tinto, and Norwegian company Norsk Hydro as another investment alternative.
While Rio Tinto has the leading aluminum operations, Rio Tinto is not as a pure play on aluminum as other companies in this group. Because of its inputs, it may not be the best choice for an investor looking only to get exposure to the aluminum market. Rio Tinto makes most of its money (75% through the first half of 2021) by producing iron ore. Aluminum contributes just 9%, copper contributes 9%, while minerals make up 7%.
The Trading Segment deals with alumina, basic aluminum, other non-ferrous metal products, raw materials such as coal, and complementary materials for domestic production plants and outside customers.
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