|Bid||41.98 x 3100|
|Ask||41.98 x 900|
|Day's Range||41.32 - 42.24|
|52 Week Range||37.34 - 62.35|
|PE Ratio (TTM)||55.62|
|Earnings Date||Oct 17, 2018|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||59.17|
Metal and mining stocks have been on a literal freefall in August. In this part, we’ll discuss the outlook for metal stocks after several stocks traded close to their 52-week lows.
Metals and mining stocks are deeply in the red today. Freeport-McMoRan (FCX) and Alcoa (AA) have fallen 6.6% and 4.4%, respectively, as of 10:10 AM EST. In the steel space, U.S. Steel Corporation (X) and AK Steel (AKS) have fallen 4.1% and 3.3%, respectively.
Usually, equity and commodity prices share a positive correlation. However, gold (GLD) is an obvious exception. The correlation between equities and commodities isn’t hard to explain. Commodities, like equities, tend to do well when demand is strong during periods of high economic growth. Commodities are weak in risk-off environments. Equity markets also fall during such periods.
It's probably not what U.S. President Donald Trump had in mind when imposing tariffs on aluminium imports, but it looks likely that some of the big winners from the 10 percent import tax will be China's producers. While Chinese aluminium companies now face the same tariff obstacle as other exporters to the United States, they appear better placed to benefit from some of the (most likely) unintended consequences of the Trump administration's policies. The Trump tariffs and measures against major Russian producer Rusal, along with a strike at Alcoa's alumina and bauxite operations in Western Australia are combining to roil aluminium markets.
SYDNEY—Already grappling with challenges including U.S. tariffs and rising costs, global mining companies face another: worker walkouts. In Australia, roughly 1,500 employees at alumina refineries and bauxite mines owned by Alcoa Corp., the largest U.S. aluminum maker, are striking over pay and working conditions.
China’s aluminum overcapacity was also mentioned in this year’s G7 meeting, which will otherwise be remembered for the exchange of rather harsh words between the United States and Canada. Chinese aluminum exports have been running strong this year despite China’s stated commitment of curtailing its aluminum overcapacity.
China released its trade data for July yesterday. China’s exports rose 12.0% YoY, while its imports rose 27.3%. In June, China’s exports rose 11.3% YoY, while its imports rose 14.1%. China’s July trade data showed improvement as compared to June and was better than expected.
Alcoa Corporation (AA), a global leader in bauxite, alumina, and aluminum products, announced today the signing of a group annuity contract to transfer assets and related obligations of defined benefit pension plans for certain U.S. retirees and beneficiaries. The Company also has made a discretionary contribution of $100 million to further fund its U.S. defined benefit pension plans. Both the annuitization and the discretionary payment reduce the risk to the Company associated with the volatility of its pension obligations and align with Alcoa’s strategic priority to strengthen the balance sheet.
Alcoa workers in Western Australia have walked out indefinitely over an enterprise agreement dispute with the aluminium maker, the Australian Workers' Union (AWU) said on Wednesday. The strike comes after Alcoa applied to Australia's workplace regulator to terminate its current agreement, affecting around 1,500 of its 1,600 workers at its three alumina refineries and two bauxite mines in the state, the union said.
The Section 232 tariffs have been a bone of contention between US steel producers and their end users. According to Reuters, Kinder Morgan (KMI), Hess (HES), and Plains All American Pipeline (PAA) are among the companies that have requested exemptions from the Section 232 tariffs. Along with exemptions defined by country, the US Department of Commerce is also considering product-related exemptions from the Section 232 tariffs.
The largest U.S. aluminum producer wants to be relieved of tariffs designed to improve U.S. metal production, even though President Trump said trade wars are good and easy to win. late Monday requested that it be exempt from the president's 10% tariff on imported aluminum. The Pittsburgh-based company wants to exclude some of its Canadian-produced aluminum rolling slab from the tariff because it needs this product to meet demand.
The following are the top stories on the New York Times business pages. - U.S. aluminum producer Alcoa Corp on Monday asked the administration for an exemption from the 10 percent tariffs as the company imports much of its aluminum from its facilities in Canada, which is among the countries subject to President Trump's metals tariffs.
Alcoa Corp. on Monday asked the Trump administration for an exemption from tariffs on aluminum imported from Canada, where the company makes a raw form of the metal that it rolls into sheet for beverage cans at a U.S. plant. “Even if all the curtailed smelting capacity in the U.S. was back online and producing metal, the United States would still need to import the majority of its aluminum,” said Tim Reyes, president of Alcoa’s aluminum business. Alcoa operates three smelting plants in Canada that supply Alcoa operations and customers in the U.S.
By Chris Sanders WASHINGTON (Reuters) - Alcoa Corp on Monday asked the U.S. Commerce Department to exempt from tariffs its purchases of 40,000 metric tons of Canadian aluminum used to make beverage cans, adding to thousands of requests for such relief. According to documents posted to its website, Alcoa said no U.S. aluminum producer can meet its specification needs and quality requirements for rolling slabs used at its Warrick, Indiana plant to produce aluminum for can manufacturers. Alcoa's application for a waiver from 10 percent tariffs on the Canadian aluminum rolling slabs is the start of an effort to try to roll back the Trump administration's tariffs on Canadian aluminum imports, a company official said.
Alcoa Corp on Monday asked the U.S. Commerce Department to exempt from tariffs its purchases of 40,000 metric tons of Canadian aluminum used to make beverage cans, adding to thousands of requests for such relief. According to documents posted to its website, Alcoa said no U.S. aluminum producer can meet its specification needs and quality requirements for rolling slabs used at its Warrick, Indiana plant to produce aluminum for can manufacturers. Alcoa's application for a waiver from 10 percent tariffs on the Canadian aluminum rolling slabs is the start of an effort to try to roll back the Trump administration's tariffs on Canadian aluminum imports, a company official said.
Alcoa Corp on Monday asked the U.S. Commerce Department to exclude its purchases of a type of aluminum from Canada that is used to make cans from tariffs the Trump Administration levied on aluminum and steel in June. According to documents posted to its website, Alcoa said no U.S. aluminum producer can meet its specification needs and quality requirements for rolling slabs used at its Warrick, Indiana plant to produce aluminum for can manufacturers. Alcoa's applications for tariff waivers on 40,000 metric tons of rolling slab is the start of an effort to roll back tariffs on Canadian aluminum imports with more applications for exemptions from the No. 1 U.S. aluminum producer planned, a company official said.
Alcoa Corp., the American aluminum maker that supplies metal used in everything from Coca-Cola cans to Boeing Co.’s 747 jetliner, is seeking relief from U.S. tariffs meant to help it. Alcoa filed five requests to the U.S. Commerce Department on Monday asking for waivers from the Trump administration’s 10 percent tariff on imports of the lightweight metal. Three of the requests are for aluminum that it said was unavailable from U.S. producers, and two are for metal that can’t be made in sufficient quantity domestically.
As noted previously, the trade talks between European Commission president Jean-Claude Juncker and Donald Trump ended on a positive note. Similarly, the second round of trade talks between the United States and China saw the two sides agreeing to pause their trade war—however, after this cooling down, the US-China trade war only intensified, with Trump threatening to impose tariffs on all Chinese imports. The Trump administration has been under pressure from steel- and aluminum-consuming industries as US steel prices and aluminum premiums have skyrocketed after the implementation of Section 232 tariffs.
The Trump administration's trade decisions seem to be the theme of the quarter. While Nucor Corporation (NYSE: NUE) and CSX Corporation (NASDAQ: CSX) celebrated the positive impact of trade policy on finished steel and ore, most corporations lamented the tariffs. Hasbro, Inc. (NASDAQ: HAS), for example, warned of “just how terrible” a tariff or trade war would be.
Cost pressure from the Section 232 tariffs, which have lifted US aluminum premiums and steel prices to multiyear highs, are among the reasons behind the guidance cut. US steel and aluminum producers were expected to gain from the tariffs. While US steel companies have welcomed the tariffs, the reaction from US aluminum producers has been mixed.
Something is amiss in Corporate America. Both national and regional surveys reveal a sinking sense that the economy’s tailwinds are shifting to headwinds. The University of Michigan consumer sentiment survey for July revealed that the business outlook had slumped to the lowest level in over two years.
The world's smelters produced 31.76 million tonnes of metal in January-June, a 1 percent decline on the first half of 2017, according to the International Aluminium Institute (IAI). Expressed in annualised terms, global output in June was almost two million tonnes lower than a year earlier. Production outside of China has been creeping higher since January but the growth rate is being constrained by an unusually high level of disruption with multiple plants operating at reduced rates.