Alcoa Faces Pressure Amid Aluminum Supply Crisis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 17 2026
0mins
Should l Buy AA?
Source: seekingalpha
Alcoa Corp (AA) fell 5.06% as it crossed below the 5-day SMA, reflecting investor concerns amid a tightening aluminum supply chain.
The recent missile strikes in the Middle East have severely disrupted aluminum production, particularly affecting Emirates Global Aluminium's Al Taweelah smelter, which may take up to a year to restore full output. This situation has led to significant price increases in aluminum, with prices on the London Metal Exchange surging over 10%. Additionally, JPMorgan upgraded Alcoa's rating from 'Underweight' to 'Neutral', indicating a positive outlook for the company amid rising regional supply risks.
The ongoing geopolitical tensions and supply chain disruptions are likely to keep aluminum prices elevated, which could benefit Alcoa in the long run, despite the immediate negative impact on its stock price.
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Analyst Views on AA
Wall Street analysts forecast AA stock price to fall
8 Analyst Rating
2 Buy
4 Hold
2 Sell
Hold
Current: 66.530
Low
38.00
Averages
57.63
High
78.00
Current: 66.530
Low
38.00
Averages
57.63
High
78.00
About AA
Alcoa Corporation is a vertically integrated aluminum company comprised of bauxite mining, alumina refining, aluminum production (smelting and casting), and energy generation. The Company's operations are comprised of two business segments: Alumina and Aluminum. The Alumina segment primarily consists of its bauxite mines and alumina refineries, and its operations include the mining of bauxite and other aluminous ores, as well as the refining, production, and sale of smelter grade and non-metallurgical alumina. The alumina produced by this segment is sold primarily to internal and external aluminum smelter customers; a portion of the alumina is sold to external customers who process it into industrial chemical products. The Aluminum segment consists of the Company's aluminum smelting and casting operations along with the Company's energy production assets in Brazil, Canada, and the United States. It has direct and indirect ownership of over 25 operating locations across eight countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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