Alcoa often has some good insight into the state of the global economy and that was no different in yesterday’s earnings report and conference call. Shares of the aluminum giant are trading up 4% despite the souring of the market.

Much of the factors affecting the stock have to do with energy prices and are specific to the aluminum market but the comments on global industrial demand are notable.

• Aluminum demand in 2021 eclipsed 2019
• They expected 2022 demand growth at 2-3%
• “We continue to see positive GDP and industrial production across most of the world’s leading economies”
• There is a clear demand upsurge in across all of our different products
• “The shortages of some specific alloying materials key to our value-added products have also eased somewhat from the tightest points in the fourth quarter”
• “On overall market dynamics, the factors supporting higher aluminum prices represent fundamental structural changes that we believe will remain in place over the next decade, supported by a drive towards more sustainable solutions.”
• “The global push to reduce carbon emissions is a boom for aluminum demand”

The call spent a good deal of time talking about how high European power prices will lead to a shortage in aluminium globally. It’s not just talk either, Alcoa shut down a smelter in San Ciprian, Spain for two years because of power costs.