Middle East Conflict Raises Concerns Over Aluminum Supply and Price Increases

The escalating conflict between the US and Iran is disrupting aluminum supplies from the Middle East, a region responsible for about 8-9% of global output. Key shipping routes like the Strait of Hormuz face risks, potentially affecting exports to the US and Europe, which rely heavily on these supplies. Producers report delays and rising physical premiums, with prices on exchanges like the LME reaching recent highs. Analysts warn that prolonged disruptions could significantly increase aluminum prices and strain supply chains, especially in Europe where alternatives are limited.