American Consumer Likely to Pay Cost of Proposed Aluminum Tariffs, South32 CEO Says
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 13 2025
0mins
Source: WSJ
Aluminum Imports and Tariffs: South32, an aluminum manufacturer, sells large quantities of aluminum to the U.S. and does not anticipate a change in demand despite President Trump's proposed tariffs on imports.
Impact on Consumers: CEO Graham Kerr believes that American consumers will ultimately bear the costs of these tariffs due to the country's reliance on imported aluminum, particularly from Canada and other nations.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy AA?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on AA
Wall Street analysts forecast AA stock price to fall
8 Analyst Rating
2 Buy
4 Hold
2 Sell
Hold
Current: 64.080
Low
38.00
Averages
57.63
High
78.00
Current: 64.080
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, which generally 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 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 26 operating locations across nine countries on six continents.
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.
Middle East War Triggers Broad Decline in Mining Stocks
- Broad Decline in Mining Stocks: Major mining companies saw significant stock declines on Tuesday, with Freeport-McMoRan down 4.3% and Vale down 6.3%, reflecting heightened market concerns over inflation and rising costs due to the Middle Eastern conflict.
- Copper Prices Dip: Front-month Comex copper futures fell 2% to $5.7735/lb, indicating market sensitivity to supply chain risks, particularly with potential disruptions in Middle Eastern production.
- Aluminum Prices Rise: In contrast to the broader metal market downturn, aluminum prices increased by 1.8% to $3,251/metric ton due to a major Middle Eastern producer halting production and declaring force majeure, highlighting concerns over supply disruptions.
- Analysts Bullish on Mining Outlook: Jefferies analysts maintain a bullish outlook on metals and mining stocks, suggesting that despite current risks, companies like Freeport and Alcoa could benefit from increased demand and rising costs in the future.
See More
Alcoa Appoints New Executive Vice President
- Executive Appointment: Alcoa Corporation announced that Emily Olson will join as Executive Vice President and Chief External Affairs Officer on April 6, 2026, leading global external affairs and communications, which is expected to enhance stakeholder engagement efficiency.
- Extensive Experience: Olson brings over 20 years of leadership experience, notably as Chief Sustainability and Corporate Affairs Officer at Vale Base Metals, where she successfully integrated government relations and sustainability strategies.
- Strategic Impact: Her appointment is anticipated to strengthen Alcoa's relationships with governments and communities, advancing the company's strategic priorities and enhancing its ability to navigate complex regulatory environments.
- Global Perspective: Olson's experience at BP plc and Freeport-McMoRan equips her with a global perspective and strategic mindset, enabling effective management of geopolitical risks and providing critical strategic advice to the company.
See More
Alcoa Appoints New Executive Vice President
- Executive Appointment: Alcoa has announced that Emily Olson will join as Executive Vice President and Chief External Affairs Officer on April 6, 2026, overseeing global external affairs and communications, which is expected to enhance the company's engagement with external stakeholders.
- Extensive Experience: Olson brings over 20 years of leadership experience in capital-intensive industries, having held executive roles at Vale and Freeport-McMoRan, which will provide Alcoa with valuable industry insights and strategic perspectives.
- Strategic Alignment: As a member of the Executive Team, Olson will work closely with senior leadership to advance Alcoa's strategic priorities, particularly in government affairs and stakeholder engagement, thereby strengthening the company's competitive position in the market.
- Global Perspective: Olson's experience in government relations and sustainability across multiple countries will help Alcoa navigate complex regulatory environments more effectively, facilitating greater business expansion in global markets.
See More
RIO TINTO WITHDRAWS INITIAL $250/T OFFER ON MONDAY TO EVALUATE EFFECTS OF MIDDLE EAST CONFLICT - SOURCES
Initial Offer: A preliminary offer of $250 per ton was made on Monday.
Impact Assessment: The offer aims to assess the impact of the ongoing conflict in the Middle East.
See More
SOUTH32'S INITIAL Q2 ALUMINIUM PREMIUM OFFER OF $220/T IN JAPAN QUARTERLY DISCUSSIONS HAS EXPIRED, SOURCES SAY
- Aluminum Premium Offer: South32 has made an initial offer for Q2 aluminum premium at $220 per ton in Japan.
- Quarterly Talks Expiration: The quarterly negotiations for aluminum premiums have expired as of Friday, according to sources.
See More
Aluminum Prices Surge Amid Geopolitical Tensions
- Aluminum Price Surge: Aluminum prices on the London Metal Exchange jumped over 3%, leading to pre-market gains of 2.7% for Alcoa (AA) and 2.8% for Century Aluminum (CNEX), reflecting market concerns over potential disruptions in the Middle Eastern bauxite supply chain.
- Geopolitical Risks: The U.S.-Israel conflict with Iran raises fears of disruptions in the critical Strait of Hormuz supply route, with Citi analysts noting that shipping disruptions could increase regional aluminum premiums even without immediate production halts.
- Middle Eastern Supply: The region accounts for approximately 9% of global primary aluminum output, with major suppliers including the UAE, Saudi Arabia, Qatar, Bahrain, Iran, and Oman, indicating that any potential disruptions to bauxite or alumina flows present a
See More
Middle East War Triggers Broad Decline in Mining Stocks
- Broad Decline in Mining Stocks: Major mining companies saw significant stock declines on Tuesday, with Freeport-McMoRan down 4.3% and Vale down 6.3%, reflecting heightened market concerns over inflation and rising costs due to the Middle Eastern conflict.
- Copper Prices Dip: Front-month Comex copper futures fell 2% to $5.7735/lb, indicating market sensitivity to supply chain risks, particularly with potential disruptions in Middle Eastern production.
- Aluminum Prices Rise: In contrast to the broader metal market downturn, aluminum prices increased by 1.8% to $3,251/metric ton due to a major Middle Eastern producer halting production and declaring force majeure, highlighting concerns over supply disruptions.
- Analysts Bullish on Mining Outlook: Jefferies analysts maintain a bullish outlook on metals and mining stocks, suggesting that despite current risks, companies like Freeport and Alcoa could benefit from increased demand and rising costs in the future.
See More
Alcoa Appoints New Executive Vice President
- Executive Appointment: Alcoa Corporation announced that Emily Olson will join as Executive Vice President and Chief External Affairs Officer on April 6, 2026, leading global external affairs and communications, which is expected to enhance stakeholder engagement efficiency.
- Extensive Experience: Olson brings over 20 years of leadership experience, notably as Chief Sustainability and Corporate Affairs Officer at Vale Base Metals, where she successfully integrated government relations and sustainability strategies.
- Strategic Impact: Her appointment is anticipated to strengthen Alcoa's relationships with governments and communities, advancing the company's strategic priorities and enhancing its ability to navigate complex regulatory environments.
- Global Perspective: Olson's experience at BP plc and Freeport-McMoRan equips her with a global perspective and strategic mindset, enabling effective management of geopolitical risks and providing critical strategic advice to the company.
See More
Alcoa Appoints New Executive Vice President
- Executive Appointment: Alcoa has announced that Emily Olson will join as Executive Vice President and Chief External Affairs Officer on April 6, 2026, overseeing global external affairs and communications, which is expected to enhance the company's engagement with external stakeholders.
- Extensive Experience: Olson brings over 20 years of leadership experience in capital-intensive industries, having held executive roles at Vale and Freeport-McMoRan, which will provide Alcoa with valuable industry insights and strategic perspectives.
- Strategic Alignment: As a member of the Executive Team, Olson will work closely with senior leadership to advance Alcoa's strategic priorities, particularly in government affairs and stakeholder engagement, thereby strengthening the company's competitive position in the market.
- Global Perspective: Olson's experience in government relations and sustainability across multiple countries will help Alcoa navigate complex regulatory environments more effectively, facilitating greater business expansion in global markets.
See More
RIO TINTO WITHDRAWS INITIAL $250/T OFFER ON MONDAY TO EVALUATE EFFECTS OF MIDDLE EAST CONFLICT - SOURCES
Initial Offer: A preliminary offer of $250 per ton was made on Monday.
Impact Assessment: The offer aims to assess the impact of the ongoing conflict in the Middle East.
See More
SOUTH32'S INITIAL Q2 ALUMINIUM PREMIUM OFFER OF $220/T IN JAPAN QUARTERLY DISCUSSIONS HAS EXPIRED, SOURCES SAY
- Aluminum Premium Offer: South32 has made an initial offer for Q2 aluminum premium at $220 per ton in Japan.
- Quarterly Talks Expiration: The quarterly negotiations for aluminum premiums have expired as of Friday, according to sources.
See More
Aluminum Prices Surge Amid Geopolitical Tensions
- Aluminum Price Surge: Aluminum prices on the London Metal Exchange jumped over 3%, leading to pre-market gains of 2.7% for Alcoa (AA) and 2.8% for Century Aluminum (CNEX), reflecting market concerns over potential disruptions in the Middle Eastern bauxite supply chain.
- Geopolitical Risks: The U.S.-Israel conflict with Iran raises fears of disruptions in the critical Strait of Hormuz supply route, with Citi analysts noting that shipping disruptions could increase regional aluminum premiums even without immediate production halts.
- Middle Eastern Supply: The region accounts for approximately 9% of global primary aluminum output, with major suppliers including the UAE, Saudi Arabia, Qatar, Bahrain, Iran, and Oman, indicating that any potential disruptions to bauxite or alumina flows present a
See More
