Are ASX Aluminium Stocks Evoking Renewed Interest?

Aluminium demand is growing thanks to electric vehicles, renewable energy projects along with expected rate cuts which will stimulate construction activity. Several ASX-listed aluminium companies have started showing increased momentum which could be a point where investors should consider adding aluminium exposure as part of a diversified portfolio.

South32 Limited (ASX: S32)

had a great September quarter as the company continued prioritising safe, reliable and disciplined production across its globally diversified assets.

Aluminium output increased by 1% as Hillside Aluminium was operated at the maximum capacity and Mozal Aluminium grew volume by 3% compared to same period in last year.

Alumina production also rose 1% supported by Brazil Alumina operating above nameplate levels and Worsley Alumina gained benefits from improved bauxite supply.

South32 is financially stable with US$64 million net cash and is well positioned to benefit from improving aluminium demand.

Metro Mining Limited (ASX: MMI)

delivered a record operational result in the September 2025 quarter by shipping 2.25 million wet metric tonnes of bauxite which reflects a 6% rise from the same period last year and a 33% increase from the previous quarter.

Operational efficiency improved further as site operating costs dropped 17% quarter-on-quarter to $25.7 per tonne which supported EBITDA of $16.1 per tonne.

Market demand remains firm with Chinese bauxite imports up 31% year-to-date while ongoing supply uncertainty from Guinea is tightening conditions heading into the final quarter of the year.

Total shipments so far this year are 4.1 million tonnes and Management expects pricing to adjust once older contracts roll off by year-end which would provide full exposure to current market rates in 2026.

Capral Limited (ASX: CAA)

reported its half-year FY25 results and revenue went up 4% to $327.2 million driven by stronger aluminium pricing and an improved product mix.

Sales volumes declined 7% to 31,100 tonnes because of weaker industrial activity but management expects a stronger second half.

Underlying EBITDA was $27.7 million and NPAT increased 4% to $15.3 million helped by tight cost control and a deferred tax benefit.

The balance sheet is in good shape with $53 million in cash, no short-term working capital borrowings and an expanded $75 million syndicated facility.

The company expects FY25 EBITDA to remain broadly in line with last year supported by stabilising aluminium prices and improving residential activity.

Alcoa Corporation (ASX: AAI)

reported September quarter sales of US$2.99 billion and net income grew to US$232 million from US$90 million a year ago.

The company has improved its balance sheet as cash and cash equivalents rose to US$1.48 billion from US$1.13 billion at the end of last year.

Aluminium sales came at US$2.07 billion for the quarter which was supported by good demand from construction, transport and manufacturing sectors.

Alcoa hopes that global aluminium demand will grow as electrification, renewable energy investment and lightweighting trends accelerate while the company remains focused on operational efficiency and disciplined capital management.

(Source: Company Reports)