Exchange traded products that invest in aluminum could see action Tuesday after Alcoa said it swung to a profit in the first quarter as aluminum prices rose.

The company said it sees a 12% increase in aluminum demand this year.

Aluminum exchange traded funds represent a tiny fraction of the overall ETF market.

The $9.7 million iPath Dow Jones-UBS Aluminum Subindex Total Return ETN has been strong since mid-March as industrial metals have rallied.

The $5.7 million Global X Aluminum ETF invests in companies that are active in some aspect of the aluminum industry.

Some Wall Street analysts think aluminum prices are set to take a breather.

BMO Capital Markets downgraded Alcoa to underperform after the quarterly results mostly on expectations of a weaker aluminum price in the quarters ahead.

“In terms of the industry outlook, demand for aluminum is rising in 2011 but so is supply,” BMO said in a research note.

Global X Aluminum ETF

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