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business1d ago
London metals index at record high amid aluminium supply squeeze fear
- The London Metal Exchange's benchmark climbed to a record as aluminium prices surged on supply fears.
- Aluminium, which weighs heavily in the index, rose about 15% since the Iran war began.
- Middle East disruptions and Hormuz blockage are blamed for restricting raw material movements.
- Analysts foresee continued price pressure despite some signals of de-escalation.
- Europe and North America are competing for limited material amid tighter inventories and higher premiums.
- Trade banks warn of a supply deficit, reinforcing expectations of price strength.
- Copper also supported gains as Asian demand rose amid Strait of Hormuz disruption.
- The overall metal index rose as the market digested ongoing Middle East tensions.
- Traders and downstream industries will monitor Middle East developments for price guidance.
- A rapid easing of hostilities could temper price pressure but supply tightness remains.
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