Overview
- Aluminium on the London Metal Exchange jumped as much as 6% to about $3,492 a tonne on Monday after reports of strikes on major Gulf smelters.
- Emirates Global Aluminium said its Abu Dhabi plant suffered “significant damage,” and Aluminium Bahrain said it is still assessing harm, leaving the scale of disruption unclear.
- Investor reaction was swift, with Hindalco, National Aluminium Company, Vedanta and Maan Aluminium rising between roughly 4% and 7% in early trading.
- Tension around the Strait of Hormuz has already slowed Middle East shipments, pushing premiums higher in Rotterdam, the U.S. Midwest and Japan.
- West Asia produces roughly 9% of the world’s aluminium, and restarting damaged smelters can take months, which could keep supply tight and prices elevated.