London aluminum prices climb as smelter outages and Chinese energy curbs threaten global supply, analysts warn.
Aluminum prices in London have surged nearly 17% since the U.S.-Iran conflict escalated, driven by fears of a supply shock. Commodity desks, including Goldman Sachs and JPMorgan, highlight disruptions from Middle East smelter outages and the Hormuz chokepoint as key factors.
The rally gains momentum as China faces potential output curbs due to energy-use and emissions inspections. Authorities are tightening oversight, raising concerns about further supply constraints in the world’s largest producer.
Analysts warn the combined impact of geopolitical tensions and regulatory pressures could tighten the market further, sustaining upward price pressure.