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Alcoa Urges LME to Improve Transparency for Clear Aluminum Price-Setting and to Enable Premium Hedging for Price Risk

  Alcoa Urges LME to Improve Transparency for Clear Aluminum Price-Setting and
  to Enable Premium Hedging for Price Risk Management

Business Wire

NEW YORK -- September 11, 2013

Alcoa (NYSE: AA) has submitted a letter to the London Metal Exchange (LME) to
comment on proposed warehouse rule changes and to recommend solutions to
effectively address the business needs of aluminum producers and consumers.

Commenting on the proposed changes, Alcoa Chairman and CEO Klaus Kleinfeld
said, "The proposed changes to the LME warehousing rules are trying to solve a
non-existent metal availability problem. Metal is readily available and
consumers are not waiting in queues. More importantly, the LME’s proposed
rules changes will only aggravate the lack of transparency that has had a
damaging impact on the aluminum industry and will do nothing to help our
customers manage their exposure to aluminum pricing.”

“We are urging the LME to take actions that instead address the real issues
affecting aluminum producers and consumers: (1) to improve transparency
through clear reporting which will enhance market efficiency and confidence in
the LME as the price-setter for aluminum, and (2) to establish regional
premium contracts to enable market participants to manage price risk by
hedging premiums."

Read Alcoa’s letter to the LME: www.alcoa.com/LME

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.

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 11 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 www.alcoa.com and follow @Alcoa on Twitter at
twitter.com/Alcoa and follow Alcoa on Facebook at www.facebook.com/Alcoa.

Contact:

Alcoa
Investor Contact
Kelly Pasterick, 212-836-2674
or
Media Contact
Monica Orbe, 212-836-2632
 
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