Alcoa (NYSE:AA) CEO Kleinfeld Interested in Aluminum ETFs

Unsurprisingly, Alcoa (NYSE:AA) CEO Klaus Kleinfeld expressed his support of the emergence of ETFs backed by aluminum, and said he would like to be a supplier of aluminum for a financial product like that.

So far, major competitor Rusal from Russia has been the major beneficiary of the move to create several aluminum ETFs.

This would be a major coup, not only for Alcoa, but the overall aluminum sector, as it would create an entirely new demand vehicle to feed at a time when aluminum demand continues to be slow.

Aluminum exchange-traded funds could also remove at least a part of the cyclical nature of aluminum, generating demand more consistently, and maybe offering the metal support while shrinking price swings.

Like other ETFs, aluminum exchange-traded funds would be backed by the metal, giving investors another option to hold the metal without storage costs and capital requirements.

Alcoa has made a nice move over the last several months after falling to about $10 a share in the latter part of August.

They closed Wednesday at $13.88, gaining $0.13, or 0.95 percent.