Aircraft
Strong Aircraft Orders Seen Driving Aluminum Demand
The flurry of new airliner orders in the first half of 2011, coupled with rising demand from other industries, has proved to be a boon to aluminum supplier
Rising demand for aluminum in the aerospace sector has boosted suppliers such as Alcoa, but at the same time volatile commodity pricing has seen stock price fluctuation. (Photo: Alcoa)
Rising demand for aluminum in the aerospace sector has boosted suppliers such as Alcoa, but at the same time volatile commodity pricing has seen stock price fluctuation. (Photo: Alcoa)

The flurry of new airliner orders in the first half of 2011, coupled with rising demand from other industries, has proved to be a boon to aluminum suppliers like Alcoa, which more than doubled its second quarter earnings in results announced on July 11. But subsequent stock market reaction, which saw Alcoa stock fall the next day, revealed how volatile the commodities sector can be.

Analysts interpreted a recent dip in aluminum prices as indicative that a period of high demand might be coming to an end. Alcoa doesn’t think so.