Aluminum climbed around 6% after Iran attacked two production sites in the Middle East, threatening to deepen supply disruptions in a region that accounts for a significant portion of global output. Prices on the London Metal Exchange rose as much as 6% to $3,492 a ton in early trading. Shares in Australian aluminum companies also rose.
The Middle East's top aluminum producer, Emirates Global Aluminium PJSC, said on Saturday it had sustained “significant damage” at its plant in Abu Dhabi, while state-owned Aluminium Bahrain said it was assessing damage at its facility.
The war in the Middle East had already pushed up prices of aluminum — used in cars, planes and solar panels — as smelters in the region can't ship out metal or bring in raw materials. The latest attacks risk making the situation worse by potentially knocking out supplies for a longer period, even if the Strait of Hormuz is reopened.
ALSO READ: Brent Crude Surges To $116 As Middle East Conflict Worsens With Houthi Attacks On Israel
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