Alcoa Issues Statement on LME Board Decision

November 7, 2013

Alcoa (NYSE:AA) commends the London Metal Exchange (LME) for taking
steps today to create a more transparent marketplace, which Alcoa
recommended and industry participants broadly support. The immediate
next step is for the LME to provide a clear timeline in which to
implement this change. Alcoa believes this is key to ensuring a more
transparent system which increases fairness and improves market function.

Alcoa supports the LME’s intention to examine creating premium
contracts, which Alcoa recommended in its response to the LME’s proposed
warehouse rule changes. Premium contracts would provide market
participants the ability to hedge exposure to the all-in price. We look
forward to working with the LME to develop these contracts. Alcoa is
also supportive of the LME’s proposed physical market committee, and
welcomes the opportunity to participate on it.

Alcoa encourages the LME to focus on increasing confidence among market
participants through greater transparency and premium contracts, and
cautions against direct market intervention. We are further encouraged
by the LME’s intention to closely monitor the consequences of its newly
adopted rules.

Alcoa remains committed to continuing to work constructively with the
LME to drive improvements in the marketplace.

About Alcoa

Alcoa is the world’s leading producer of primary and fabricated
aluminum, as well as the world’s largest miner of bauxite and refiner of
alumina. In addition to inventing the modern-day aluminum industry,
Alcoa innovation has been behind major milestones in the aerospace,
automotive, packaging, building and construction, commercial
transportation, consumer electronics, and industrial markets over the
past 125 years. Among the solutions Alcoa markets are flat-rolled
products, hard alloy extrusions, and forgings, as well as Alcoa® wheels,
fastening systems, precision and investment castings, and building
systems in addition to its expertise in other light metals such as
titanium and nickel-based super alloys. Sustainability is an integral
part of Alcoa’s operating practices and the product design and
engineering it provides to customers. Alcoa has been a member of the Dow
Jones Sustainability Index for 12 consecutive years and approximately 75
percent of all of the aluminum ever produced since 1888 is still in
active use today. Alcoa employs approximately 61,000 people in 30
countries across the world. For more information, visit,
follow @Alcoa on Twitter at
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