UNRIF - Alcoa spikes to new highs; sees higher aluminum prices shorter alumina supply

Alcoa (AA +6.1%) shares surge as much as 14% to an all-time high $85.73 before paring gains, as aluminum prices extend their recent rise as financial sanctions on Russia for invading Ukraine prompt concerns about supplies. London Metal Exchange benchmark aluminum (LMAHDS03:COM) recently was +2.8% at $3,463/metric ton after touching a record high of $3,525/ton on Monday; Russia produces ~6% of the world's aluminum. Russian aluminum producer Rusal (OTC:UNRIF) halted production at its Nikolaev alumina refinery in Ukraine, citing logistical challenges on the Black Sea and surrounding areas "The key risk to the aluminum market is that the loss of this alumina supply results in an eventual suspension of primary smelting capacity in Russia, with ~900K tons/year production at risk," Goldman Sachs analysts say. Alcoa CFO William Oplinger told a Deutsche Bank conference on Monday that he expects higher aluminum prices and tighter alumina supply as a result of sanctions

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Alcoa spikes to new highs; sees higher aluminum prices, shorter alumina supply