Updated from 3:31 p.m. EDT to include aluminum price projections in the fourth paragraph.
NEW YORK (TheStreet) -- Alcoa (AA) closed 8.8% higher to $9.36 after an 11.6% spike mid-afternoon. Flat in the early portion of the day, the stock hit its stride at midday to reach a new 52-week high.
Fueling the spike is an across-the-board rally for aluminum producers and a series of positive announcements from the company's management.
Alcoa far surpassed the industry in share price growth, followed by Century Aluminum (CENX) which gained 8.1%, Aluminum Corp of China (ACH) up 3.7%, Australia-based producers BHP Billiton (BHP) and Alumina Limited (AWC) climbing 3.2% and 2.4% respectively, and Noranda Aluminum Holding (NOR) 4.7% higher. Kaiser Aluminum (KALU) lagged the group, gaining 0.94%.
Bloomberg credits speculation on future aluminum prices as spurring an industry rally, noting aluminum for delivery in three months rose 2.2% on the London Metal Exchange. The publication also said that investors closing out stock short options could have been a trigger to its meteoric rise.
Also influencing Alcoa's gains, the New York-based company announced it has partnered with Russia's VSMPO-AVISMA to provide high-end titanium and aluminum to aircraft manufacturers internationally.
"The agreement marks an important step in leveraging Alcoa's and VSMPO-AVISMA's strengths in innovation and manufacturing to capture opportunities in the high-growth aerospace market," said CEO Klaus Kleinfeld in a statement. "This alliance will enhance Alcoa's competitiveness and position our global aerospace business for continued profitable growth."
The joint venture, expected to be operational in 2016, will take advantage of the burgeoning aerospace market, an industry Alcoa forecasts will grow 9% to 10% in 2013 alone.