Aluminum prices have risen to a record high: traders react to the new crisis
2 June 12:09
Global aluminum prices have reached their highest level since March 2022 amid concerns over potential disruptions to metal supplies due to tensions in the Middle East. This was reported by Reuters, according to "Komersant Ukrainian"
During trading on the London Metal Exchange, the price of benchmark aluminum rose to $3,707.50 per metric ton, the highest level since March 2022.
Later, prices corrected slightly but remained at a high level—around $3,685 per ton.
This indicates that the market continues to react nervously to any signals of potential problems with logistics and metal exports from the region.
Why aluminum is getting more expensive
Analysts attribute the rise in aluminum prices to the escalation of the conflict between the U.S. and Iran, which has increased risks for global supply chains.
The Middle East plays a significant role in the global aluminum market, as the region accounts for about 9% of global aluminum smelting capacity.
As a result, any instability in the region immediately affects the sentiment of traders and industrial consumers, who fear a reduction in market supply.
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How the Strait of Hormuz Affects the Market
Restrictions on shipping through the Strait of Hormuz have become an additional cause for concern. Important maritime routes pass through the strait, facilitating both the export of finished aluminum and the supply of raw materials needed for its production.
If the situation in the strait worsens, it could further disrupt global metal supplies and push prices higher.
Why aluminum is so important to the global economy
Aluminum is one of the world’s key industrial metals. It is widely used:
- in the automotive industry;
- in aircraft manufacturing;
- in construction;
- in packaging manufacturing;
- in the manufacture of aluminum beverage cans.
That is why any disruptions in the supply of aluminum quickly affect a wide range of industries—from industrial manufacturing to the consumer market.
What analysts are predicting
Experts are already warning that the global aluminum market could face a serious shortage in 2026. According to some estimates, the metal shortage could exceed 2 million tons.
This means that high prices may persist, and tensions between producers and consumers will only intensify.
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