Aluminum Prices Hit Four-Year High on Supply Disruptions
Aluminum prices hit a four-year high as Middle East conflict shuts the Strait of Hormuz. Supply risks rise with the Mozal smelter also closing this month.
Aluminium prices surged to four-year highs on Monday as escalating conflict in the Middle East sparked fears of prolonged shipping disruptions. The benchmark price for the metal, essential for the transport, construction, and packaging industries, reached an intraday peak of $3,544 per metric ton, its highest level since March 2022. While the price later retraced to $3,394 per ton, the market remains on edge due to the ongoing hostilities involving the United States, Israel, and Iran.
The conflict has effectively paralyzed the Strait of Hormuz, a critical maritime artery through which regional aluminium production is typically shipped to Western markets. This bottleneck is particularly concerning for European buyers, as it coincides with the scheduled closure of a major African supply source. Marex analyst Ed Meir noted the gravity of the situation for the region.
