Aluminum surges to highest since 2022 after U.S.-Iran strikes
Business
Aluminum just hit its highest price since 2022, climbing to $3,707.50 per ton after recent U.S.-Iran military strikes shook up trade routes in the Middle East.
The Strait of Hormuz, which restricts exports from the region and raw material imports, has become a major bottleneck, making it harder for manufacturers in the Middle East to get what they need.
Aluminum spot premium tops $100
With experts predicting a supply deficit of over 2 million tons this year, the market is feeling the squeeze.
The premium for immediate aluminum delivery shot past $100 per ton—a level not seen in nearly two decades.
As Britannia Global Markets puts it, "The extreme backwardation highlights the severity of the squeeze." making everything from cars to buildings more expensive to produce.