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Aluminium · Geopolitics · Middle East · Supply Chain
Iranian strikes over the weekend damaged two major Middle East aluminium producers, Aluminium Bahrain and Emirates Global Aluminium, causing benchmark three-month aluminium on the London Metal Exchange (LME) to surge 4.34% to US$3,439 per metric ton on Monday.
The damage deepened supply fears, especially since Gulf producers, which account for about nine percent of global supply, already face shipping disruptions through the Strait of Hormuz due to the US and Israel's war against Iran. Aluminium Bahrain had already begun shutting 19 percent of its capacity earlier this month, and serious damage to these plants could lead to further, difficult-to-recover production cuts, according to traders cited by Reuters.
LME aluminium hit US$3,492 earlier, near a four-year peak of US$3,546.50, while the most-active aluminium contract on the Shanghai Futures Exchange climbed 3.64% to 24,775 yuan (US$3,581.08). Other base metals on the LME showed mixed movements, with copper dropping 0.56% and zinc rising one percent.
Iran Strikes Damage Plants, Aluminium Prices Jump(current)
