Alcoa’s 2023 Sales Projections Dim Due to Price Declines

Alcoa Corp. (NYSE: AA), a major producer of bauxite, alumina, and aluminum, is anticipated to experience a -15% year-over-year sales decline in 2023, primarily due to reduced average realized prices for alumina and aluminum. According to Visible Alpha consensus, in 2023, Alcoa is expected to see total alumina revenue decline to $5.7 billion (-7% YoY), while aluminum revenue is estimated to decline to $7 billion (-20% YoY). In 2023, average realized prices per metric ton for alumina and aluminum are projected to drop by -6% to $361 and by -18% to $2,794, respectively. These price declines are attributed to a broader turbulence in commodity prices resulting from the Russia-Ukraine conflict, the strengthening of the dollar in the wake of monetary tightening, and developments in China.

Sector: Materials
Industry: Aluminium
VA Ticker(s): AA_US