Alcoa Inc (AA.NYSE) reported a 59% increase in first-quarter profits and said it expects global demand for aluminum to rise 7% this year due partly to China’s appetite for the material, The Wall Street Journal reported. Analysts said aluminum prices are likely to rise gradually this year, after production cutbacks in China helped to reduce a glut of aluminum that weighed down prices. Alcoa Chief Executive Klaus Kleinfield said that the company generated more profits from value-added downstream operations such as designing automotive and aerospace parts in the first quarter, making weak aluminum prices “less and less of a risk.”
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