Aluminum is a versatile and lightweight metal known for its low density and being roughly one-third the weight of steel or copper. Its unique properties, such as high strength-to-weight ratio, corrosion resistance, and excellent conductivity, make it essential in various sectors, including transportation, construction, and packaging.
One of the primary drivers of aluminum’s growth is the increasing focus on sustainability across industries. With its recyclability and lower carbon footprint compared to other metals, aluminum is becoming a go-to material for green technologies. The automotive and electric vehicle (EV) industry, in particular, is driving demand for aluminum as manufacturers seek lightweight materials to improve efficiency and range. By incorporating aluminum into vehicle designs, automakers also meet regulatory standards for emissions reduction.
Aluminum also plays a critical role in the renewable energy sector, as the production of solar and wind products requires significant amounts of aluminum. In addition to these industries, aluminum’s unique properties make it an ideal material for food packaging, and the construction sector, including infrastructure, and development.
In the report, Opportunities for Aluminium in a Post-COVID Economy, conducted by CRU International, the global demand for aluminum is projected to rise by nearly 40% by 2030. The aluminum sector will need to produce an additional 33.3 million tonnes to meet this demand, with production increasing from 86.2 million tonnes in 2020 to 119.5 million tonnes by 2030 across all industrial sectors.
According to the report, two-thirds of this demand growth is expected to come from China, which will require 12.3 Mt, whereas the rest of Asia will add a further 8.6 Mt. North American region will require 5.1 Mt and Europe 4.8 Mt. Together, these four regions alone will account for more than 90% of the additional aluminum required globally.
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The Aluminum Market Amid Global Changes
In an interview with CNBC on November 12, William Oplinger, President and CEO of Alcoa, said that he considers the Chinese market a crucial factor in the aluminum industry. He noted that China’s enormous appetite for commodities, particularly in the green sector, has a significant impact on the aluminum market. China currently produces around 45 million metric tons of aluminum, out of a global market of 75 million metric tons. However, the country has capped its production capacity at 45 million metric tons, meaning that any growth in demand will be met through secondary and recycling sources.
In terms of near-term dynamics, Oplinger expressed optimism about the demand for aluminum, citing continued strength in the packaging business, growth in the automotive and transportation sector, and potential growth in building construction spurred by lower interest rates worldwide.
Looking ahead to the long term, Oplinger emphasized the importance of aluminum in the energy transition economy, highlighting growth opportunities in areas such as electrical conductors, photovoltaic cells, and electric vehicles.
Aluminum Market Sees Price Spike as China Cancels Export Tax Rebate
On November 29, China’s finance ministry announced that it would be making significant changes to its export tax rebate policy, set to take effect on December 1. The ministry announced that it will cancel the export tax rebate for several products, including aluminum and copper products. The announcement had an immediate impact on the market, with aluminum prices surging on the London Metal Exchange. Traders are anticipating that the cancellation of the export tax rebate for aluminum will curb the heavy flow of Chinese aluminum exports, leading to a reduction in global supply and a subsequent increase in prices.
As the aluminum industry continues to evolve amidst a changing global landscape, one thing remains certain, the growing demand for this versatile metal looks bright. With growing demand, shifting market dynamics, and emerging trends shaping the sector, now is an exciting time for investors to explore opportunities in the aluminum market. With that in context, let’s take a look at the 10 best aluminum and aluminum mining stocks to buy.
An aerial view of an aluminum mill, showcasing the company’s production capabilities.
Our Methodology
For this article, we sifted through Base Metal ETFs and online rankings to form an initial list of 20 companies that are involved in the production, extraction, processing, or sale of aluminum and aluminum-related products. We then used Insider Monkey’s Hedge Fund database to rank 10 stocks according to the largest number of hedge fund holders. The list is sorted in ascending order of hedge fund sentiment, as of the third quarter.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Aluminum and Aluminum Mining Stocks To Buy
10. Kaiser Aluminum Corporation (NASDAQ:KALU)
Number of Hedge Fund Holders: 17
Kaiser Aluminum Corporation (NASDAQ:KALU) is a leading producer of semi-fabricated specialty aluminum products used in aerospace, automotive, packaging, general engineering, automotive extrusions, and industrial applications. The company’s client base includes major aerospace manufacturers and automotive companies.
Kaiser Aluminum Corporation (NASDAQ:KALU) focuses on premium product offerings and operational efficiency to enhance profitability. Recent growth strategies include expanding capacity and diversifying product lines to meet industry demands. Kaiser Aluminum Corporation (NASDAQ:KALU) has been focused on improving its operational efficiency and investing in capital expenditures to enhance its production capabilities. Specifically, the company’s Warrick packaging facility is undergoing performance enhancements, which are expected to be complete by the end of the year. This investment is anticipated to lead to margin improvement and drive profitability and growth. Kaiser Aluminum Corporation (NASDAQ:KALU) is also looking for additional ways to further improve operations and efficiency.
9. Ardagh Metal Packaging SA. (NYSE:AMBP)
Number of Hedge Fund Holders: 23
Ardagh Metal Packaging SA. (NYSE:AMBP) is a leading global supplier of recyclable aluminum beverage cans and ends. The company serves a diverse range of categories such as beer, carbonated soft drinks, energy drinks, and more. The company operates 23 production facilities across nine countries and employs approximately 6,300 people.
On October 24, Ardagh Metal Packaging SA. (NYSE:AMBP) reported a solid Q3, with adjusted EBITDA growth ahead of guidance for the third successive quarter. In Europe, Ardagh Metal Packaging SA.’s (NYSE:AMBP) shipments increased by over 2% for the quarter. The company attributes this growth to a strong end market, with customers favoring cans in their pack mix and rebuilding inventory levels. Despite some short-term capacity constraints, Ardagh Metal Packaging SA. (NYSE:AMBP) is confident in the region’s recovery and has increased its expectations for shipment growth in Europe to 3% to 4% for the year.
In the Americas, Ardagh Metal Packaging SA. (NYSE:AMBP) has also seen growth, with revenue increasing by 1% to $741 million. The company has benefited from favorable volume mix effects and lower operating costs, including a stronger manufacturing performance and improved fixed cost absorption.
To drive growth, Ardagh Metal Packaging SA. (NYSE:AMBP) is investing in its manufacturing footprint, with a focus on increasing capacity and improving efficiency. The company is also working to strengthen its customer relationships, with a focus on providing high-quality products and services. In addition, Ardagh Metal Packaging SA. (NYSE:AMBP) is committed to sustainability, with a goal of achieving 100% renewable energy by 2050. The company has made significant progress in this area, with a recent agreement to purchase renewable energy in Portugal.
8. Mueller Industries, Inc. (NYSE:MLI)
Number of Hedge Fund Holders: 27
Mueller Industries, Inc. (NYSE:MLI) is an industrial manufacturer that specializes in copper, brass, and aluminum products primarily used in HVAC systems, refrigeration, and industrial applications. The company serves sectors such as building construction, appliance, defense, energy, and automotive. Mueller Industries, Inc.’s (NYSE:MLI) operations span across North America, Europe, Asia, and the Middle East.
On October 22, Mueller Industries, Inc. (NYSE:MLI) announced its financial results for the third quarter of 2024. Net sales for the quarter reached $997.8 million, marking a significant increase from $819.8 million in the third quarter of 2023. Net income for the quarter climbed to $168.7 million, representing a 27.1% increase compared to $132.7 million in the third quarter of 2023. Diluted earnings per share (EPS) also grew to $1.48, up from $1.17 in the same period last year.
Looking forward, Greg Christopher, CEO of Mueller Industries, Inc. (NYSE:MLI) stated that he anticipates that declining interest rates, moderating inflation, and the resolution of election-related uncertainty, will support a more stable and favorable environment for the company’s business operations.
7. Ball Corporation (NYSE:BALL)
Number of Hedge Fund Holders: 30
Ball Corporation (NYSE:BALL) is a global leader in aluminum packaging, that offers innovative, environmentally friendly solutions to beverage, personal care, and household product markets. The company is a pioneer in leveraging aluminum’s recyclable properties to create packaging that aligns with the growing global demand for sustainable products. Ball Corporation (NYSE:BALL) operates a network of state-of-the-art manufacturing facilities across North America, South America, Europe, and Asia, serving a diverse customer base that includes major global brands.
Ball Corporation (NYSE:BALL) is pursuing several strategic initiatives to drive growth and sustain its leadership in the aluminum packaging industry. On November 4, Ball Corporation (NYSE:BALL) announced that it had acquired Alucan, a European leader in extruded aluminum aerosol and bottle technology. The acquisition of Alucan complements Ball Corporation’s (NYSE:BALL) existing global extruded aluminum aerosol and bottle business with the addition of manufacturing facilities in Llinars del Vallés, Spain, and Lummen, Belgium.
The new plants will enable the company to meet the growing demand for sustainable packaging solutions in Europe. Both facilities are equipped with cutting-edge technology and aim to minimize their environmental footprint, aligning with the company’s dedication to sustainability and operational excellence.
With the acquisition of Alucan, Ball Corporation (NYSE:BALL) will be able to diversify its customer base, cross-sell with food and beverage manufacturers, and expand its bottle offerings to include personal and home care products. The company will also be able to offer large-diameter aerosol cans and impact extruded bottle capabilities to support its existing reusable bottle customers.
6. Reliance, Inc. (NYSE:RS)
Number of Hedge Fund Holders: 30
Reliance, Inc. (NYSE:RS), formerly known as Reliance Steel & Aluminum is the largest metal service center operator in North America. The company operates more than 320 locations across 13 countries. The company offers value-added metals processing services and distributes over 100,000 metal products, including aluminum, carbon steel, and stainless steel, to more than 125,000 customers across various industries including aerospace, construction, energy, and infrastructure companies.
Reliance, Inc. (NYSE:RS) is actively pursuing growth through strategic acquisitions. The company has a long history of successful acquisitions, having completed 76 deals since its IPO in 1994. In 2024 alone, Reliance, Inc. (NYSE:RS) has completed four acquisitions, including the purchase of certain toll processing assets of FerrouSouth division of Ferragon Corporation. The company’s M&A pipeline remains active, and it continues to seek out well-managed service centers and metals processors that possess strong brand equity and solid reputations in the marketplace.
Reliance, Inc. (NYSE:RS) is also focused on expanding its product diversification and value-added processing capabilities. The company’s diversified business model, which includes a wide range of products and services, has helped it to outperform the industry in terms of growth and profitability. By continuing to invest in its product offerings and processing capabilities, Reliance, Inc. (NYSE:RS) is well-positioned to capitalize on emerging trends and opportunities in the market.
5. Rio Tinto Group (NYSE:RIO)
Number of Hedge Fund Holders: 30
Rio Tinto Group (NYSE:RIO) is a global leader in mining and minerals, producing iron ore, aluminum, and copper. Its key clients include companies in the construction, technology, and energy sectors. Rio Tinto Group (NYSE:RIO) is expanding its presence in the aluminum industry with strategic acquisitions.
On November 1, Rio Tinto Group (NYSE:RIO) completed the acquisition of Sumitomo Chemical Company’s 20.64% stake in New Zealand Aluminium Smelters (NZAS), which owns and operates the Tiwai Point aluminum smelter in New Zealand. With this acquisition, Rio Tinto now wholly owns NZAS.
The company is also signing new electricity arrangement agreements with renewable energy companies to produce aluminum competitively. New Zealand’s Aluminium Smelter (NZAS) converts alumina into aluminum using renewable hydroelectricity, which results in one of the lowest carbon footprints for an aluminum smelter in the world.
During the third quarter, Rio Tinto Group (NYSE:RIO) also completed the acquisition of Sumitomo Chemical Company’s 2.46% stake in Boyne Smelters Limited (BSL). This, combined with the recent acquisition of Mitsubishi’s 11.65% stake in BSL, brings Rio Tinto’s interest in BSL to 73.5%.
Rio Tinto Group’s (NYSE:RIO) growing stake in BSL and its acquisition of NZAS demonstrate its commitment to increasing its aluminum production capacity and strengthening its position in the global aluminum market.
4. Century Aluminum Company (NASDAQ:CENX)
Number of Hedge Fund Holders: 31
Century Aluminum Company (NASDAQ:CENX) produces high-quality, low-carbon aluminum for the automotive, construction, and packaging industries. The company owns and operates aluminum smelting facilities in the United States, Iceland, and the Netherlands. Additionally, Century Aluminum Company (NASDAQ:CENX) is the majority owner of the Jamalco alumina refinery in Jamaica.
Century Aluminum Company (NASDAQ:CENX) is actively evaluating opportunities to redevelop its Hawesville facility, the company’s largest U.S. plant, with a production capacity of around 250,000 metric tonnes of high-purity aluminum per year. The company has received strong interest from third parties to utilize the site for alternative purposes. However, Century Aluminum Company (NASDAQ:CENX) has engaged financial advisors for the overall evaluation of the site, as it has a significant value as an option for restart due to the higher aluminum price.
Previously, Century Aluminum Company (NASDAQ:CENX) was exposed to the fluctuations of the spot market for alumina, meaning its costs were subject to unpredictable price changes. However, after acquiring a controlling interest in Jamalco, an alumina production company, Century Aluminum Company (NASDAQ:CENX) is no longer reliant on volatile market prices. Instead, the company now sources its smelter alumina requirements directly from Jamalco or through long-term supply contracts linked to London Metal Exchange (LME) prices.
This change has allowed Century Aluminum Company (NASDAQ:CENX) to secure a more stable and predictable supply of alumina, reducing exposure to market volatility. The company is also capitalizing on favorable market dynamics with strong operational performance, notably at its smelters.
3. Constellium SE (NYSE:CSTM)
Number of Hedge Fund Holders: 34
Constellium SE (NYSE:CSTM) specializes in aluminum rolled products, structural parts, and extruded products for the aerospace, automotive, and packaging industries. The company’s clients include leading automakers and beverage companies. Constellium SE (NYSE:CSTM) is investing heavily in recycling technologies to enhance its sustainability profile and improve operational efficiency.
On November 12, 2024, Constellium SE (NYSE:CSTM) made a significant announcement regarding a major breakthrough in aluminum recycling for the automotive industry. The company successfully implemented Laser-Induced Breakdown Spectroscopy (LIBS) technology at an industrial scale.
This innovation addresses a significant challenge in automotive aluminum recycling, which is the proper segregation of alloy families. Traditionally, mixed alloys from scrap were downcycled, limiting their use in high-value applications. However, the LIBS sorting technology enables rapid and accurate sorting of aluminum scrap, achieving over 95% purity for both alloy families. This means that recycled aluminum can be used to produce high-quality solutions without compromising material integrity.
This achievement has the potential to transform aluminum recycling practices on a global scale. The company’s Vice President of Global Automotive, Dieter Holl, highlighted the significance of this innovation, stating that it is an “unprecedented leap forward for the industry” and allows for the recovery of high-quality alloys from pre-consumer scrap, reducing the carbon footprint and supporting customers’ sustainability goals.
2. Alcoa Corporation (NYSE:AA)
Number of Hedge Fund Holders: 42
Alcoa Corporation (NYSE:AA) is a global leader in bauxite mining, alumina refining, and aluminum production. The company’s primary clients include construction, transportation, and packaging companies. The company’s Alumina segment focuses on extracting bauxite and refining it into alumina for aluminum production, while the Aluminum segment encompasses smelting and cast house operations.
Alcoa Corporation (NYSE:AA) is focusing on high-margin products and is expanding through acquisitions to strengthen its position as one of the world’s largest bauxite and alumina producers. The company is also prioritizing sustainability through the use of renewable energy and innovations such as the ELYSIS zero-carbon smelting technology.
On November 3, Alcoa Corporation (NYSE:AA) announced that it has entered into a binding agreement to acquire Alumina Limited, an aluminum mining company that carries out mining of bauxite, refining, and smelting of aluminum. The acquisition is expected to strengthen Alcoa Corporation’s (NYSE:AA) position as a bauxite and alumina producer. The acquisition is expected to be completed in the coming months, subject to shareholder approvals and other customary conditions.
1. Crown Holdings, Inc. (NYSE:CCK)
Number of Hedge Fund Holders: 43
Crown Holdings, Inc. (NYSE:CCK) manufactures beverage packaging, food packaging, aerosol packaging, metal closures, promotional packaging, and transit packaging company for food, beverages, and consumer products. It’s one of the world’s largest producers of aluminum beverage cans. The company’s clients include leading beverage companies and food manufacturers. Crown Holdings, Inc. (NYSE:CCK) operates 200 plants in 40 countries in Europe, the Middle East and North Africa.
On October 17, Crown Holdings, Inc. (NYSE:CCK) announced its financial results for the third quarter ended on September 30. Despite challenges from unfavorable foreign currency translation and reduced volumes in some sectors, Crown Holdings, Inc. (NYSE:CCK) reported net sales of $3.07 billion, showing a slight increase from $3.06 billion over the same period last year. The company’s global beverage can business was a standout performer, with at least a 5% year-over-year increase in shipments in all key markets such as Brazil, Europe, Mexico, and the United States. Crown Holdings, Inc.’s (NYSE:CCK) income from operations increased from $374 million year-over-year to $444 million, driven by stronger results in global beverage operations.
Crown Holdings, Inc. (NYSE:CCK) is enhancing its manufacturing capabilities through continuous improvements that drive operational efficiency and cost savings. In Q3, the company’s manufacturing improvements contributed $20 million to $25 million in benefits. The company is also returning value to shareholders, with the Board of Directors approving a $2 billion share repurchase program through the end of 2027. The company has already repurchased 117 million shares of common stock in the first nine months of 2024.
While we acknowledge the potential of Crown Holdings, Inc. (NYSE:CCK) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CCK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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