Here's Why Shares in Alcoa Slumped This Week
Shares in alumina and aluminum products company Alcoa (NYSE: AA) declined by more than 15% in the week to late Thursday afternoon. The sliding share price comes at a time when commodity markets have begun to price in a reopening of the Strait of Hormuz as part of an agreement between the U.S. and Iran.
Having finished last week trading at about $3,400 per tonne, it's trading below $3,200 per tonne as I write. The price correction negatively impacted aluminum product companies this week, and it's no coincidence that Century Aluminum also declined by a mid-teens percentage for the week.
While oil and liquefied natural gas naturally (pun intended) captured attention when Iran closed the Strait, a host of other commodities were also affected by the lack of commercial traffic through it. One of them is aluminum, given that the Middle East produces up to 9% of global aluminum production.
Source Fool.com
