Why Alcoa Stock Jumped as Much as 13.5% Today
Shares of Alcoa (NYSE: AA), one of the world's largest aluminum companies, rose as much as 13.5% on Tuesday. The move appears to be a response to the company's presentation at an industry conference, from which there was one really notable takeaway.
Alcoa is a vertically integrated aluminum maker, offering the aluminum inputs bauxite and alumina as well as finished aluminum. It is one of the largest names in the sector and the decisions it makes can have material implications for the rest of its industry. Right now, however, there are broader factors that have investors excited about the metal, which has run up sharply in price. Notably, there appears to be a supply/demand mismatch, and indications are that aluminum supply will remain tight. This means high prices could be here to stay for a while.
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Source Fool.com
