Aluminum Prices Surge 10% After Iranian Strikes, Tightening Physical Market
Iranian attacks on Gulf aluminium producers Alba and Qatalum triggered a 10% jump in aluminium prices, reaching $3,492/tonne – the highest in four years. The shock deepened an existing 600 kt supply deficit, lowered LME inventories to a record low, and pushed the US Midwest premium past $1/lb, signalling acute spot scarcity.
Iranian attacks on Gulf aluminium producers Alba and Qatalum triggered a 10% jump in aluminium prices, reaching $3,492/tonne – the highest in four years. The shock deepened an existing 600 kt supply deficit, lowered LME inventories to a record low, and pushed the US Midwest premium past $1/lb, signalling acute spot scarcity.
In the short to medium term, aluminium traders should expect sustained upward pressure as inventories remain tight and premium levels stay elevated. Further production cuts or a prolonged Strait of Hormuz blockade could push prices toward the $3,517/tonne forecast by quarter‑end, while a diplomatic resolution may ease the tightness.