Sector Snap: Aluminum Shares Mostly Gain

FBR Capital Markets analyst Amir Arif said in a client note that he is "most concerned about (Pittsburgh-based Alcoa Inc.), not so much on the expected first quarter 2008 results, but on second quarter 2008 outlook being weaker than expected, given our views of weakening aluminum fundamentals for the second quarter."

Arif specifically cited three concerns: smelter restarts, inventories continuing to build and high energy costs. Last week Barclays Capital analyst Gayle Berry said "tight energy markets" may slow future production of aluminum.

Besides Alcoa, Arif also expressed concern about Century Aluminum Co., based in Monterey, Calif., saying "both of these names are very sensitive to their respective commodity movements."

In late morning trading, Alcoa shares fell 55 cents to $38.45, and Century Aluminum rose $1.65, or 2.4 percent, to $71.65.

Kaiser Aluminum Corp. gained $2, or 2.8 percent, to $73.50, and Aluminum Corp. of China Ltd. American Depositary Shares rose $1.70, or 3.9 percent, to $45.65.