Aluminum prices surge 18% following US conflict with Iran
Aluminum prices have surged approximately 18% since the U.S. attack on Iran on March 28. This escalation in prices is largely attributed to the heightened tensions between Iran and the U.S., coupled with the closure of the strategic Strait of Hormuz. These developments have sparked widespread fears of a significant supply shock in the global aluminum market.
The disruption began with the shutdown of smelters in the Middle East and the critical maritime chokepoint at the Strait of Hormuz, which is a vital passage for global energy and commodity shipments. This initial supply constraint has now been compounded by emerging concerns regarding China’s aluminum production. According to Bloomberg, China may be compelled to reduce its output due to ongoing energy consumption and emissions inspections aimed at curbing environmental impact.
Together, these factors are creating shortages in the aluminum market, driving prices higher as supply risks intensify on multiple fronts—from geopolitical conflicts in the Middle East to regulatory pressures in China.
To be noted that Last year, aluminum prices increased as a result of U.S. tariffs imposed on aluminum imports.
