Aluminum prices on the London Metal Exchange have risen to their highest level in four years. The main reason for this is the blockade of Iranian ports imposed by U.S. President Donald Trump, which poses a threat of new supply disruptions from Gulf countries.
This is reported by Finway
Market Reaction and Influencing Factors
During the last trading session, the price of aluminum increased by 2.3%, resuming the upward trend caused by supply shortages due to the armed conflict in the Middle East. The U.S. military has announced its intention to initiate a full blockade on all vessels entering or leaving Iranian ports and coastal areas. The implementation of these measures is scheduled for 3:00 PM Kyiv time on Monday.
“The price of aluminum has surged to a four-year high in London as the blockade of Iranian ports by U.S. President Donald Trump threatens further supply disruptions from the Gulf,” the report states.
Production and Demand: Market Situation
Middle Eastern countries currently account for approximately 9% of global aluminum production. Previously, the largest producer in the region, Emirates Global Aluminium PJSC, has already suffered damage due to hostilities, further intensifying market tensions.
At the same time, the metals market is under pressure from declining demand. Rising energy prices are negatively impacting the global economy, which, in turn, may reduce metal consumption, including aluminum. Some price stabilization is supported by demand from China. However, according to analysts, aluminum stocks in China have already reached their highest level since 2020, and relatively low demand from this country may limit further price increases for this metal.