Iranian Missile Strikes Spark Aluminum Price Surge
Aluminum stocks are rallying today due to disruptions in production caused by Iranian missiles and drones striking Emirates Global Aluminium's Al Taweelah smelter. According to Bloomberg, the Middle East's top aluminum producer lost power at its Abu Dhabi site after the weekend strikes.
The loss of power forced an uncontrolled shutdown of potlines at the smelter, leading to a 2% rise in aluminum prices on the London Metal Exchange. Aluminum Bahrain, another leading producer in the area, also reported that its facilities were attacked by Iran over the weekend.
Shares of Alcoa (AA), Kaiser Aluminum (KALU), and Century Aluminum (CENX) have gained significantly this year, with AA up 32%, KALU up 11.5%, and CENX up 57.5%. JPMorgan analyst Bill Peterson upgraded Alcoa to 'Neutral' from 'Underweight' in February, raising the price target to $68.