Iran Aluminum Industry Attacked, Global Markets Grow Anxious

Iran attacked aluminum production facilities in the Middle East, and on the 30th the aluminum market and related stocks saw sharp swings. Reports of Iran’s attack fueled expectations of higher aluminum prices, and related stocks surged accordingly.

On the 29th, local time, Iran’s Islamic Revolutionary Guard Corps announced that, in response to attacks on its domestic steel mills, it had targeted important aluminum production facilities in Bahrain and the United Arab Emirates. Iran’s move appears to be the result of recent U.S. and Israeli military actions. This has had a major impact on key raw-material supply chains, especially because the strait of Hormuz has been blocked, disrupting the transport of raw materials; since last month, aluminum prices have risen sharply.

In fact, in the securities market, shares of Three A Aluminum rose, for example, 7.28% from the previous day, and aluminum-related stocks jumped significantly, but as the close approached, the gains narrowed. Other companies such as South Korean Aluminum and North One Aluminum also rose sharply in the early session, but they were unable to hold at the daily limit.

However, this incident did not have the same impact on all aluminum firms. Global Aluminum for Bahrain and the UAE said it had not stopped operations and was still producing. Based on this, some analysis suggests it may not have an immediate effect on aluminum prices.

Whether aluminum prices will continue rising in the future depends on the situation in the Middle East and Iran’s further military responses. Aluminum is widely used across multiple fields such as aircraft, electrical wiring, and beverage cans, so price fluctuations are very likely to trigger ripple effects across the entire industry. Experts believe that if such supply-chain disruptions continue for the long term, they could have a major impact on the aluminum market overall.