Aluminium Prices Surge, Listed Companies Poised to Benefit
JAKARTA, KOMPAS.com - Aluminium prices have surged in recent weeks, bringing benefits to several listed companies engaged in commodity-based downstream projects.
According to Trading Economics, global aluminium prices have risen 47.67% year-on-year (YoY) to $3,650 per ton as of Friday, 22 May 2026, while year-to-date (YTD) growth stands at 20.77%.
The significant price increase stems from prolonged supply disruptions in the Middle East amid geopolitical conflicts.
One such company, PT Alamtri Minerals Indonesia Tbk (ADMR), is developing an aluminium smelter through its subsidiary PT Kalimantan Aluminium Industry (KAI), which is scheduled to commence operations in phases by late 2025.
The first phase of the smelter is projected to have an annual production capacity of 500,000 tonnes of aluminium ingot.
ADMR is not alone in this venture; PT Cita Mineral Investindo Tbk (CITA) holds a 12.5% stake in KAI and serves as a strategic partner, supplying alumina as the raw material for ADMR’s smelter.
ANTM has also partnered with Inalum in the project, targeting completion by late 2028 or early 2029.
Muhammad Wafi, Head of Research at Korea Investment & Securities Indonesia (KISI), stated that the aluminium price surge will significantly impact companies involved in commodity downstream projects.
He noted that current price increases far exceed ADMR’s smelter project economic assumptions, leading to drastic profit margin improvements and more attractive Internal Rate of Return (IRR).
“CITA, as a bauxite producer supplying the smelter, will also reap windfall gains from rising upstream demand,” he said on Monday, 25 May 2026.
ANTM, which has already commenced construction of SGAR Phase I by late 2025, is directly benefiting from higher average selling prices (ASP).
In this environment, companies in the aluminium supply chain must accelerate production capacity increases and secure long-term sales contracts with global buyers to lock in margins amid elevated prices.