William Oplinger 5.0 2 ideas

Alcoa met Q1 expectations, delivered $600 million EBITDA, and is guiding to a stronger second quarter due to increased orders from customers rerouting supply chains away from the Middle East, indicating operational resilience and benefit from market tightness.

Supply disruptions from the Iran conflict have curtailed 2.5 million metric tons of aluminum production inside the Strait of Hormuz, with more capacity at risk, leading to a tight market that started the year tight and is expected to get tighter, especially in the US in May-June, supporting higher aluminum prices.