Mideast tensions boost LME aluminum to 3-month high
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Update time : 2025-06-24 14:47:24
Aluminum prices hit a three-month high of US$2,589/ton on the London Metal Exchange (LME). Concerns about potential energy price hikes and disruptions to Middle Eastern metal shipments, following recent US military action in the region, are boosting the prices of aluminum and other metals.
Electricity accounts for roughly 40% of aluminum smelting costs, and a significant portion of the region's aluminum raw materials, like bauxite and alumina, relies on sea exports. Increased geopolitical risks could severely disrupt the aluminum supply chain. Alastair Munro, Senior Base Metals Strategist at Marex, said that Middle Eastern nations produce around 9% of the world's aluminum, and any major disruption to shipping lanes would significantly impact metal and raw material flows.
Other metals, including copper, lead, tin, and zinc, are also experiencing volatility, with zinc rising by 2.1% to US$2,685/ton. Analysts and investors are closely monitoring regional developments and their broader impact on commodity markets.
