Alcoa, a global industry leader in bauxite mining, alumina refining and aluminium manufacturing, witnessed an 11 per cent fall in its early trading on Thursday. However, on the London Metal Exchange (LME), the aluminium futures dropped the largest since 2018. The decline is mainly owed to the growing tension regarding the global economic fallout from the ongoing conflict in Iran, leading to widespread losses in the industrial metals markets.

Looking at the LME benchmark for three-month aluminium, a drop of 8 per cent, totalling USD 3,115 per tonne, was seen. This was before the price bounced back to USD 3,214 per tonne. Nonetheless, this directly implies that the gains that had built up since the start of the conflict in the Middle East had raised concerns about the stability of aluminium supplies in the region.

ANZ analysts, in a note, stated that irrespective of this, the aluminium buyers in regions like Asia, Europe and the US are continuously racing to secure aluminium. Additionally, China's stockpile tends to expand and is easing the upward price pressures. 

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In the same note, the analysts also included that the aluminium prices, which are higher outside China, are encouraging the producers to enlarge their exports, aiding in reducing the current global supply tensions.

Further reflected by the analysts, currently, nearly 8 per cent to 9 per cent of the global aluminium produced is held accountable by the Middle East. However, in terms of production, the region holds only 3 per cent of alumina and 1 per cent of bauxite. This is the major reason why the smelters are now becoming highly dependent on the seaborne imports.

On a week-on-week basis, starting from March 13 to March 20, the firm's stock price declined from USD 67.31 to USD 58.66, showing a difference of 13 per cent. Looking at month-on-month stock movement, on February 20, the firm recorded the stock price at USD 60.49, which on March 20 stood at USD 58.66, reflecting a decline of 3 per cent. 

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Year-to-date, the firm's stock price on January 2 was USD 56.54, showing an upward movement of 4 per cent. On a year-on-year basis, on March 20, 2025, the firm's stock was at USD 34.84, reflecting a positive climb of 68 per cent.  

Concerning the stocks of other major aluminium firms, Century Aluminum, a global metals and mining company, took a plunge of 8.2 per cent. Similarly, Constellium, a global leader in the development, manufacturing, and recycling of aluminium products and solutions, saw a dip of 4.6 per cent. 

Kaiser Aluminum, a firm delivering highly engineered, semi-fabricated aluminium products, took a hit of 3.9 per cent. Last but not least, Norsk Hydro, a leading aluminium and renewable energy company, faced a 3.5 per cent decline in stock. 

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