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The aluminum and copper industries are affected by the Asian economic crisis. Aluminum demand is expected to be greater than supply throughout 1998 and conservative investors should probably not invest in the industry. Copper production continues to outpace demand during 1998. The US economy is expected to slowdown in the latter half of 1998.

Earnings for the aluminum industry were strong in 1997 and are expected to remain so in 1998 with limited new capacity and increased product demand inseveral markets. However, there is a surplus of copper, demand is expected to outstrip production, making the industry's future uncertain. Investors should, however, avoid both aluminum and copper stocks in 1998 due to the future uncertainty in their markets.

Aluminum demand has had an annual 5% increase since the early 1990s, and capacity is forecast to remain about the same. However, the industry is untimely in the late 1990s due to the Asian financial crisis. The copper industry is also untimely in the late 1990s and is unfavorably ranked, with weak demand and increased supplies. With a few exceptions investors should avoid stocks in either the aluminum and copper industries in the 1990s.

Aluminum and copper stocks are not considered timely stock investments during Oct 1997. Aluminum inventories have increased 20% from Aug 1997 levels and prices have decreased 10% from the summer 1997. Analysts are anticipating a tight supply/demand balance. Copper prices have declined 15% during August through October 1997, with a decrease in demand from Asia and higher inventories.

US demand for prefabricated products is expected to continue rising in 1997 and 1998, along with economic growth. The aluminum inventory surplus is being reduced, and Russian exports are not expected to rise. Investors should avoid the industry, although some companies will have strong profits. Copper supplies may outstrip demand, though usage is strong. However, various factors indicate that investors need to make selective commitments.

Aluminum industry earnings rebounded in the March, 1997 quarter to continue an increase trend that began in 1996 but aluminum stocks carry poor Timeliness rankings. While they are poor short-term investments, some aluminum companies could be good 3- to 5- year prospects. Outside of one or two copper mining companies which offer mild investment possibilities, the copper industry should have price drops in both halves of 1997 which will continue sharply downward until 2000-2002 and limit investment possibilities.

Industrial users of aluminum are expected to restock their inventories in 1997, and the supply of aluminum has dropped since 1994. The more favorable balance of supply and demand has increased prices and profits for aluminum, and these stocks have increased timeliness in 1997. Copper demand remains strong and the supply has been reduced. However, accurate reporting and increased regulation are problems, and copper stocks are not timely in 1997.

Sumitomo's announcement of unauthorized trades hit the copper market hard. Prices dropped almost 25% in June and July 1996. Dividends are above average, performance is off and the ranking contains no stocks with an above average timeliness factor. Cyprus Amax withdrew a $200 million offering after its stock price fell and construction of a Chilean mine was delayed by Gibraltar Mines because of lack of underwriting.

An oversupply was created when large amounts of Russian aluminum were marketed to the West. A Memorandum of Understanding temporarily closed down some global production capacity, but inventory decline has slowed. Demand should increase with a better economy. These stocks are subpar for the long term. Increased supply of copper will lower prices, and demand growth is hard to predict. These stocks are not timely in 1995 or for the next three to five years.

Earnings for the 1st qtr of 1995 were good for the aluminum industry, due to good fabricated product and primary metal prices. Aluminum stocks are timely for investors seeking dividends, but not price appreciation. Copper prices are expected to weaken in 1996 with added copper supplies, but increased demand will strengthen the industry by 1998-2000. Phelps Dodge is the most attractive stock for capital gains for the next three to five years.

The rise in the prices of copper and aluminum fueled upward movement in the stocks of diversified metal companies over 1994. Increased demand from overseas has helped metal companies prosper, despite the rising interest rates domestically, which could work to slow down demand in the US. However, the use of aluminum in cars should increase in 1995, improving demand for the metal in North America. Although stock prices might not increase much more in 1995, they should remain strong.

The aluminum and copper industries are evaluated. Aluminum stocks are not a good investment in late 1994 due to the lack of profitability within the industry. Although the outlook is better than it was earlier in the year, due to increasing product demand and decreasing production figures, the price increases are still not significant enough. On the other hand, the copper industry has had a high demand for its product which has resulted in a decreasing supply. The financial outlook for the industry is excellent.

The aluminum industry is expected to experience below-average performance through 1997-1999, and the copper industry is expected to have good long-term prospects. Aluminum stocks have been reduced, which has helped to boost prices. Copper prices are expected to decline through the end of 1994. Investments in the copper industry should focus on companies such as Magma Copper and Phelps Dodge.

The aluminum industry was adversely affected by exports from the former Soviet Union and industry leaders met to cut production to raise prices during 1994. Demand for aluminum in Japan and Europe is low, but US industries, such as auto and building, are buying more. The industry should break even in 1994, but prospects grow strong for 1997 through 1999. However, for the short-term, the aluminum industry stocks are not a good buy. Copper prices will stay at current levels, but will rise to 95 cents per lb in 1995.

The long-term outlook for aluminum company stocks is good, but the short-term outlook is plagued with problems such as high inventories and an overabundance of imported products from the Commonwealth of Independent States. Similarly, copper prices will remain about the same during 1994 while the economy recovers, but long-term prospects for the copper industry are strong. Investors should consider both metals as good long-term investments, but short-term investments are risky.

Aluminum companies are likely to perform poorly in the near future because of depressed economic conditions and an oversupply of exports from the former Soviet Union. The copper industry has experienced weak prices caused by both poor demand and oversupply. Copper prices are expected to be driven by rising demand from 1996 through 1998, which should bode well for the earnings of some companies in this field. Copper prices are expected to stay in the range of 80 to 85 cents per pound in 1994.

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