Aluminium prices surged to four-year highs on Monday after Iranian airstrikes on two major Middle East producers raised concerns about a prolonged supply disruption.
Benchmark aluminium on the London Metal Exchange rose by 4.7% to $3,453 per metric ton, after briefly touching $3,492 earlier in the session. The metal, widely used in transport, construction, and packaging, saw strong upward pressure due to supply risks.
The ongoing conflict involving Iran and the closure of the Strait of Hormuz has already disrupted aluminium shipments to markets in the United States and Europe.
Aluminium Bahrain said it was assessing damage from the strikes, while Emirates Global Aluminium reported significant damage to its plant. Meanwhile, Alba has already shut down smelting lines representing nearly 19% of its production capacity.
Analysts warned that the attacks are pushing an already fragile market toward crisis, especially as global inventories remain low. Aluminium stocks in London Metal Exchange-approved warehouses have fallen by more than 60% since last year, leaving little buffer against supply shocks.
Concerns over shortages have also driven the premium for immediate delivery higher, reaching levels not seen since 2007.
In addition to aluminium, other industrial metals have shown mixed movements, with copper, zinc, lead, tin, and nickel all recording gains amid expectations of stronger demand from China.
However, analysts caution that ongoing supply chain disruptions linked to the conflict could weigh on the overall outlook for global industrial metals.
