Aluminum prices surged towards levels not seen since 2022 following Iranian attacks on two major Middle Eastern producers over the weekend, raising concerns about a potential supply crisis. Futures on the London Metal Exchange spiked 5.5% to $3,492 per tonne before settling at $3,381, marking a 10% increase since the conflict began on February 28. The attacks targeted Emirates Global Aluminium (EGA) and Aluminium Bahrain, with EGA reporting significant damage to its Al Taweelah smelter, which produced 1.6 million tons of cast metal in 2025.
The disruption is particularly alarming given that around 9% of global aluminum supply originates from the Gulf region, which has faced severe export challenges since Iran restricted access to the Strait of Hormuz. Analysts warn that if the damage to EGA’s facility proves long-lasting, the market could shift from temporary softness to a more sustained deficit, potentially pushing prices higher.
Market professionals should monitor this evolving situation closely, as any further escalation could significantly impact aluminum supply chains and pricing dynamics across multiple industries, including construction and electronics.
Source: cnbc.com