Aluminum prices in international markets have reached their highest level in four years, while fears of prolonged transportation disruptions in the Middle East, as a result of the war with Iran and the escalation of the conflict, have increased concerns about the supply of this metal. Aluminum reached $ 4,073.50 per ton, the highest level since March 2022 – a period that coincided with the start of the war in Ukraine and fears about supplies from Russia. The price then retreated to around $ 3,386 per ton.
The conflict in the Middle East has virtually paralyzed traffic in the Strait of Hormuz, a key route through which aluminum produced in the region is transported to the United States and Europe.
According to Marex analyst Ed Meir, quoted by Reuters, European countries are particularly worried, as the blockage of supplies from the Persian Gulf comes at a delicate moment. One of the early suppliers of aluminum to Europe, Mozal, is expected to close its activity this month. At the same time, the sharp increase in oil prices is adding to fears of a slowdown in global economic growth and weaker demand for industrial metals. Additional pressure on the market is also being exerted by the strengthening of the US dollar.