Aluminum stocks in focus amid Middle East smelting disruptions
Aluminum stocks are in focus today as supply problems hit the Middle East.
The GCC and Iran, which together account for about 7 million tons of smelting capacity, roughly 9-10% of global aluminum output, are facing big disruptions, especially tough since close to 75% of GCC production is export-oriented and a significant share flows into the US and Europe.
Smelter slowdowns lift price forecasts
Geopolitical tensions have slowed down major smelters in Bahrain and Qatar, making an already tight market even tighter.
JPMorgan says it could take nine to 12 months for things to get back on track.
With less aluminum around, prices are climbing: JPMorgan now expects $3,250 per metric ton (up from $2,850), and warns spikes could even reach $4,000.
The shift has investors eyeing aluminum more closely than ever.