Alcoa beats earnings, warns tariffs could tighten aluminum market

As Alcoa looks ahead to 2025, the company is keeping a close watch on trade policies while focusing on growing its value-added aluminum products and securing its supply chain, despite global challenges. In the fourth quarter, aluminum production at the Alumar smelter in Brazil increased by 2%, reaching 571,000 metric tons as the facility continues its restart process. Although aluminum shipments stayed flat at 641,000 metric tons, the aluminum segment’s revenue grew by 5%, driven by higher prices.

For the full year, Alcoa boosted aluminum production by 5%, thanks to the restart of the Warrick and Alumar smelters. Average aluminum prices hit $3,006/mt in the fourth quarter, the company’s best pricing of the year. Alcoa also set production records at five smelters in the U.S., Canada, and Norway, helping drive annual revenue to $11.9 billion, a 13% increase compared to 2023.

CEO William F. Oplinger highlighted the challenges tied to global trade, stating that current policies and tariffs are making it harder for U.S. aluminum producers to stay competitive. “We need fair trade policies to ensure the U.S. aluminum industry can remain strong in a global market,” Oplinger said.

In 2024, Alcoa made a key move by acquiring Alumina Limited, which gives the company greater control over raw materials. This acquisition helps stabilize operations and ensures Alcoa can reliably meet the needs of its downstream aluminum markets.

Looking ahead, Alcoa expects aluminum production to grow to between 2.3 and 2.5 million metric tons in 2025, with shipments projected to reach 2.6 to 2.8 million metric tons. However, the company acknowledges some headwinds, including the loss of production from its Ma’aden joint ventures and the end of IRA 45X tax credits that provided a significant boost last year.