Aluminum prices surge amid Middle East conflict
Business
Aluminum prices just shot up, with worries over the Middle East conflict making it harder to get metal out of the region.
Prices on both the Shanghai and London exchanges climbed over 1%, mainly because traders are nervous about shipments through the key Strait of Hormuz getting disrupted.
Analysts expect aluminum to remain expensive in 2026
The Middle East supplies about 9% of the world's aluminum, so trouble there quickly hits global prices.
The commodity trader Mercuria canceled or earmarked nearly 100,000 tons of aluminum in LME-approved warehouses in Port Klang, Malaysia.
With no end to the conflict in sight, analysts have bumped up their price forecasts for 2026, expecting aluminum could stay expensive if these supply risks stick around.