Alcoa Calling for 2015 Aluminum Surplus

Bloomberg reported that Alcoa Inc. (NYSE:AA) is calling for an aluminum surplus in 2015 due to slow global consumption and increased Chinese output.

As quoted in the market news:

Demand will increase 6.5 percent this year, compared with 9 percent in 2014, the company said as it reported first-quarter earnings after the close on Wednesday. Alcoa also said worldwide output will exceed consumption by 326,000 metric tons this year, compared with its January projection for a 38,000-ton deficit.

In terms of how Alcoa is doing, the article states:

While the company posted better-than-expected earnings, sales trailed analysts’ estimates. The shares dropped 3.7 percent to $13.17 at 9:47 a.m. in New York. The aluminum price on the London Metal Exchange fell to a three-week low.

Alcoa is among aluminum producers that have shut or idled high-cost capacity in recent years, most recently announcing the curtailment of a Brazilian plant. Still China, the largest supplier and user of the metal, keeps increasing output. The country’s production rose 9.1 percent last year, according to data compiled by Bloomberg.

Click here for the full Bloomberg report.