Alcoa’s aluminium business shows strong growth: expects production of up to 2.6 Mt in 2026

Stock image for referential purposes only

Alcoa Corporation continues to benefit from strong demand in its aluminium business, supported by the packaging, electrical and transportation sectors.

The company’s aluminium production capacity has increased following the restart of the San Ciprián smelter in Spain, Alumar in Brazil and Lista in Norway.

To know the long-term bauxite market forecast, book our report: “Global Bauxite & Alumina Market Forecast to 2036: Supply–Demand, Trade Flows & Price Outlook”

In the first quarter of 2026, Alcoa’s Aluminium segment’s third-party sales rose to USD 2.54 billion from USD 1.91 billion in the first quarter of 2025. Aluminium product sales also increased to USD 2.58 billion from USD 1.96 billion in the same period last year.

The company said aluminium demand has continued to grow due to wider use in electric vehicles, recycled aluminium products, and rechargeable batteries.

Higher aluminium prices have also supported earnings. Prices have increased because of tensions in the Middle East and disruptions to trade flows through the Strait of Hormuz, which tightened aluminium supply in the region.

Also read: JPMorgan Chase and Co. says aluminium smelters may face a longer recovery period than petroleum coke supply

Alcoa is also benefiting from US tariffs on imported aluminium. In June 2025, the US administration raised tariffs on imported aluminium to 50 per cent to support domestic producers and reduce trade imbalances. The higher tariffs contributed to stronger aluminium prices in the domestic market.

For 2026, Alcoa expects aluminium production between 2.4 million tonnes and 2.6 million tonnes, while shipments are projected between 2.6 million tonnes and 2.8 million tonnes. The company said the Aluminium segment is expected to remain its main growth driver in the near term.

Must read: Key industry individuals share their thoughts on the trending topics

Among competitors, Constellium SE reported a 24 per cent rise in revenue in its Packaging and Automotive Rolled Products segment during the first quarter of 2026, supported by higher metal prices, though shipments fell 3 per cent.

Ryerson Holding Corporation reported revenue growth of more than 30 per cent in the first quarter of 2026 after its merger with Olympic Steel. The company also saw higher selling prices across aluminium products.

Don't miss out- Buyers are looking for your products on our B2B platform

Shares of Alcoa Corporation have risen 124.7 per cent over the past year. The company is trading at a forward price-to-earnings ratio of 7.96 times, compared with the industry average of 8.49 times. Its 2026 earnings estimate has increased 53.2 per cent over the past 60 days.