Aluminum prices have surged to four-year highs, driven by supply disruptions linked to geopolitical tensions, particularly the ongoing conflict involving Iran, which impacts 9% of global aluminum supply. Disruptions from Iranian strikes on Gulf smelters have triggered shutdowns and shipping difficulties through the Strait of Hormuz, exacerbating an already tight market and leading to sharp price increases that have benefited key players in the industry.
Alcoa Corporation and Century Aluminum Company are standout performers in this environment, both reaching new 52-week highs. Alcoa, with a fully integrated supply model, has seen its projected earnings per share for 2026 rise to $6.27, marking a 66% year-over-year increase. Century, as a primary aluminum producer, has reported a 60% share price increase year-to-date, with earnings projections for 2026 now at $6.72, reflecting robust demand and operational improvements. Both companies are capitalizing on the favorable aluminum market conditions despite broader economic uncertainties.
