Alcoa Inc

3772 WordsNov 27, 201216 Pages
Alcoa INC. History view: Alcoa Inc is Aluminum Company of America. It is the world 's third largest producer of aluminum, behind Rio Tinto Alcan and Rusal. Alcoa conducts operations in 31 countries more than 200 locations. Alcoa is a world leader in the production and management of primary aluminum, fabricated aluminum, and alumina combined, through its active and growing participation in all major aspects of the industry: technology, mining, refining, smelting, fabricating, and recycling. Aluminum and alumina represent more than three-fourths of Alcoa’s revenue. Non-aluminum products include precision castings and aerospace and industrial fasteners. Alcoa’s products are used worldwide in aircraft, automobiles, commercial…show more content…
Threat of substitute products: Alcoa has a differentiate product line and some of the areas as energy has a potential to substitute as renewable energy. Macroeconomics Trend Analysis of Aluminum World Demand. Export and import of the fused aluminum has a high sensitivity to the macroeconomic situation in the industrial sector of the world economy. The price volatility depends on the industrial demand for the aluminum. Global demand is leading by China and emerging markers economics. However according to Alcoa “Outlook for aluminum Plattes Metal” the demand has the downward sloping curve. Global demand growth in 2010 was 13% compare to the data in 2011was 12%. The biggest demand for the aluminum products comes from China. In 2011, China experience the deficit of the aluminum consumption compare the rest of the world was the surplus. The smelting costs curve increased by 26.2% from the 2005 – 2010 years. Increase in the production costs increase the aluminum price. According to the trend analysis of the costs of goods sold of Alcoa, we can see the cost of sales increase every quarter. In 2012, the cost of the revenue increase by 3 % from the 1st quarter to 3rd quarter. However the revenue went down by 3% at the same time period. Besides
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