Iranian drone and missile strikes caused significant damage to Emirates Global Aluminium in Abu Dhabi and Aluminium Bahrain (Alba). The affected region accounts for approximately 9% of the global aluminum supply. This disruption shifted the market from a surplus to a projected 1.3 million ton deficit.
The attacks exacerbated a market already strained by low inventories and Strait of Hormuz shipping constraints. Aluminum futures on the London Metal Exchange jumped nearly 6% following the strikes. Prices have now reached their highest levels in four years.
U.S. producers Alcoa (AA) and Century Aluminum (CENX) saw share prices surge over 10%. Investors anticipate these unaffected companies will capture market share and benefit from the global supply shortage.