Why Are Aluminum Stocks AA, KALU, CENX Rallying Today?

• The smelter on the outskirts of Abu Dhabi lost power due to the strikes and smelting facilities known as potlines were forced into an uncontrolled shutdown, the report said. 
• According to Bloomberg, aluminum prices rose as much as 2% on the London Metal Exchange. 

Aluminum stocks including Alcoa (AA), Kaiser Aluminum (KALU), and Century Aluminum (CENX) rallied on Wednesday after reports that Emirates Global Aluminium has halted operations. 

The Middle East's top producer of the metal halted operations at its Al Taweelah smelter after the site was struck by Iranian missiles and drones over the weekend, Bloomberg News reported, citing a person familiar with the matter. 

The smelter on the outskirts of Abu Dhabi lost power due to the strikes and smelting facilities known as potlines were forced into an uncontrolled shutdown, the report said. 

Rising Aluminum

Aluminum prices rose as much as 2% on the London Metal Exchange, the report said. 

LME futures for aluminum have soared following the strikes, and Aluminium Bahrain—another leading producer in the area—has also reported that its facilities were attacked by Iran over the weekend. Both plants rank among the largest globally, each having produced 1.6 million tons of aluminum in 2025, according to Bloomberg.

Latest Analyst Rationales

JPMorgan also earlier upgraded Alcoa to ‘Neutral’ from ‘Underweight’ with a price target of $68, up from $50. Since the conflict in Iran began, aluminum prices have rallied 12% on regional supply risk, the analyst then told investors in a research note.

JPMorgan analyst Bill Peterson late in Feb. also raised the firm's price target on Kaiser Aluminum to $124 from $118 and kept a ‘Neutral’ rating on the shares.

Retail Reaction

Retail sentiment around AA and CENX trended in ‘extremely bullish’ territory while sentiment for KALU trended in ‘bullish’ territory. 

Shares of AA, KALU and CENX gained 32%, 11.5% and 57.5%, respectively, so far this year.