Exchange traded products that invest in aluminum followed Alcoa shares lower Tuesday morning after the Dow component reported quarterly results that disappointed Wall Street.

Alcoa said it swung to a profit in the first quarter as aluminum prices rose, but traders punished the stock and Alcoa shares were down about 6% in recent action.

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

However, 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.

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