Alcoa's stock price surged 6.01% during intraday trading on Wednesday, as aluminum producers rallied broadly.
The sharp rise follows a report from consultancy Wood Mackenzie stating that major aluminum production facilities in the Middle East have been severely impacted by recent attacks. The Al Taweelah smelter in the United Arab Emirates, operated by Emirates Global Aluminium, has halted operations, while the Alba smelter in Bahrain is expected to operate at only 30% capacity due to significant damage.
Wood Mackenzie warned that the ongoing conflict is triggering a critical supply crisis, potentially removing 3 to 3.5 million tons of aluminum output from the global market in 2026. With the Al Taweelah and Alba facilities representing a combined annual capacity of approximately 3.1 million tons, the disruptions are seen as bullish for other major producers like Alcoa, as a tighter supply outlook supports higher metal prices.
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