Aluminum highest since late June after stalled US Iran talks
Business
Aluminum just reached its highest price since late June, mostly because talks between the US and Iran over reopening the Strait of Hormuz have stalled.
With both sides refusing to budge, people are worried about supply chain issues worldwide.
On Monday, August 10, aluminum futures on the London Metal Exchange (LME) jumped 1%.
Stockpiles at lowest since 1990
The Middle East usually supplies about 10% of the world's aluminum, so any long-term standoff could really shake things up.
Stockpiles are already at their lowest since 1990; LME warehouses hold just 250,000 tons, and big producers like Norsk Hydro warn that if trade stays blocked, shortages could top 900,000 tons this year.
Even with extra output from China and Indonesia, stockpiles are already at their lowest since 1990.