American aluminum stocks rip following strikes against Gulf’s giant smelters
Aluminum stocks soared Monday after Iran attacked major smelting operations in the Gulf region over the weekend.
Alcoa and Century Aluminum both surged Monday, after strikes Saturday hit aluminum plants in Bahrain and the United Arab Emirates. New York aluminum futures were up about 4% shortly after 11 a.m. ET.
Bloomberg reports that the Gulf is the source of roughly 9% of the world’s aluminum supply, which was already imperiled by the closure of the Strait of Hormuz.
Iran’s Revolutionary Guard Corps said the combined drone and missile attacks on the plants were justified by the aluminum producers’ links to the US military and aerospace industries in the region.
Producing aluminum is highly energy-intensive, and the Gulf has emerged as a center of the industry in recent years due to its energy assets. Emirates Global Aluminum, for example, is one of the world’s largest producers of the lightweight metal.
The attacks on the plants only add to the upward pressure on prices, as it can take months to restart closed smelters.
Bloomberg reports that the Gulf is the source of roughly 9% of the world’s aluminum supply, which was already imperiled by the closure of the Strait of Hormuz.
Iran’s Revolutionary Guard Corps said the combined drone and missile attacks on the plants were justified by the aluminum producers’ links to the US military and aerospace industries in the region.
Producing aluminum is highly energy-intensive, and the Gulf has emerged as a center of the industry in recent years due to its energy assets. Emirates Global Aluminum, for example, is one of the world’s largest producers of the lightweight metal.
The attacks on the plants only add to the upward pressure on prices, as it can take months to restart closed smelters.
