Ford will begin increasing aluminum content of F-150 trucks this fall,they say it will cut vehicle weight by 750 lbs.Logically then,this idea should spread to all vehicle manufacturers.It would be neat to see a truck get 20 mpg in the city with NO loss of power.
first off, fiberglass boats much lighter and less expensive than aluminum. But for cars, yes....and aluminum has indeed been going up as a percent. It has helped offset some of the big losses...like aluminum cans and aluminum foil packaging. Problem with this stock price though is supply is everywhere and thus, aluminum prices are fallling, as are most commodities. Not a good time for aa....hence the $8 stock price, very high PE ratio, and low dividend. But other than that.....
I'm not talking about your jet skis and 20 foot recreational sport boats. I'm talking about large boats/ships that until recently have been built using steel. Do some research, quit being ignorant.
Yup...they need to shed the pounds...but they are doing it with Carbon Fiber...AL prices are kept low'ish by the world wide glut in capacity. Those crazy Chinese can sure run a furnice...
Sorry, kind of a stagnant industry for the next few years...yes, I think there is some upside but max $10 next year. Still, that's 20%+ rise from today. I'm expecting less. there are better places to be financially.
Carbon fiber IS lightweight, but doesn't have the same physical strength as Aluminum. You might be able to make a hood or motorcycle wheel out of carbon fiber, but you'll never make a unibody or car/truck wheels out of it.
Alcoa needs to spend less focus on their Mining and rolling operations, and focus on the EPS business, where they add value, and are not just selling a commodity.
have you checked how much it costs to use carbon fiber vs aluminum? well you should. we have already discussed the expense of carbon fiber on this board. when you see your average car or truck using carbon fiber, let me know.
Aluminum, nearly as plentiful as air. You do comprehend how much aluminum is in the Earth right? AA uses vast amounts of energy to extract and refine, energy prices going up, aluminum worldwide stockpiles also going up. AA stock price going lower.