Hermes sanctions widen aluminum gap
Reports indicate that restrictions on shipping through the Persian Gulf are exacerbating the global aluminum market deficit, which is expected to exceed 900,000 tons if the US-Iran crisis continues. This threatens to reduce supply despite the availability of alternatives, increased production, and recycling efforts. Although European stocks were weak and declined at the start of the war, increased supplies from China and Indonesia, along with higher recycling output from Norsk Hydro, helped temporarily mitigate the crisis's impact. However, ongoing tensions are further widening the supply gap, with aluminum prices on the London Metal Exchange rising to $3,180 per ton due to these tensions and the escalation of the Gulf crisis.
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