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Aluminum Market Tightens as Hormuz Closure Restricts Global Supply

Aluminum prices have surged while exchange inventories contracted sharply, reflecting deepening supply constraints tied to Middle East shipping disruptions. The closure of the Strait of Hormuz has rippled through commodity markets, with physical metal spreads compressing as buyers compete for limited availability. Industry analysts warn the waterway could remain blocked for months, threatening elevated prices. Oil markets have shown similar vulnerability, with crude inventories expected to reach critically low levels within weeks. Spot prices for Brent have been forecast to reach $150-$160 per barrel once stocks become depleted. Market participants are closely monitoring ceasefire negotiations between the U.S. and Iran, hoping a breakthrough could restore shipping flows. Until the geopolitical situation stabilizes, aluminum users face sustained procurement challenges and elevated costs.