Middle East conflict disrupts supply, aluminum prices set for largest weekly gain in 2024

Golden Ten Data, March 6 – As Middle East conflicts intensify, disrupting regional transportation and impacting the spot market, aluminum prices are set to record their largest weekly gain since September 2024. London Metal Exchange (LME) aluminum prices rose on Friday, with a cumulative weekly increase of over 5%, pushing the benchmark contract to its highest level since 2022. The US-Israel war against Iran, now in its seventh day, is transmitting shocks to the global aluminum industry. End users and traders are preparing for the possibility of prolonged disruptions to shipments through the Strait of Hormuz, which is currently effectively closed to shipping. Smelters in the Persian Gulf region, including Aluminium Bahrain BSC and Qatar Aluminium Ltd, both reported delivery and production disruptions this week.