In 2014, the year didn’t start on a positive note for steel plays. The US faced one of the most severe winters in recent history. This led to unplanned outages at some of the steel plants.
Alcoa’s leverage ratio has increased over 2Q 2014. This basically means that the proportion of debt in Alcoa’s capital structure has increased.
ConocoPhillips plans to reduce capex by $2.5 billion in 2015. Other exploration companies also expect to lower capital expenditure targets.
Aluminum premiums are negotiated between aluminum warehouses and the end buyers. This makes them less susceptible to speculation.
China’s slowdown, along with the increase in its smelting capacity, raises fears of an increase in aluminum exports from China.
Alcoa’s engineered products and services In the previous part of this series, we discovered that the engineered products and services segment is Alcoa’s (AA) most profitable. In this part, we’ll look at two…
Alcoa’s value-added business is expected to be a key driver in 2015. This segment is largely immune from aluminum price volatility.
Midstream operations, or global rolled products, produce aluminum sheets that are used in the packaging, automotive, and aerospace industries.
At full, ramped-up capacity, Alcoa’s joint venture will make up almost a quarter of the company’s total smelting capacity.
Alcoa should see the profitability of its primary business grow in 2015. Lower energy costs are likely to benefit upstream operations.
Rio Tinto (RIO), BHP Billiton (BHP), and Alcoa are among the major players in the aluminum production industry with upstream operations.
Producers including Alcoa (AA), Century Aluminum (CENX), and BHP Billiton (BHP) should benefit from strong aluminum demand in 2015.
There’s been a lot of discipline among major aluminum plays such as Alcoa. Over-production was an issue for nine years, but no more.
In this series, we’ll pay special attention to Alcoa’s 2014 performance and to how investors can play Alcoa and other aluminum companies in 2015.
Marathon Petroleum Corporation (MPC) recently announced an agreement with Enbridge Energy (EEP) to serve as an anchor shipper on its Sandpiper Pipeline.
MPLX LP’s (MPLX) primary growth strategy is to accelerate its annual distribution growth rate to average in the mid-20% range over the next five years.