Alcoa’s second quarter results confirmed what everyone has long suspected; the aluminium industry is in dire form. Alcoa reported a small quarterly loss after restructuring costs. On an underlying basis, the world’s third largest aluminium business made just US$61m in quarterly profit on revenue of more than US$6bn. Even in a very capital intensive industry, it’s an awful result.
In an almost desperate plea for clemency, Alcoa continues to remind the world that global demand for aluminium is rising; it’s expected to grow 7% this year. But as the tumbling price of the metal attests, supply growth is even stronger.