Gulf Smelters Recover, Shaking Aluminum Market

The industrial metal aluminum experienced a volatile trading period influenced by geopolitical events. In late March, missile strikes in the Persian Gulf damaged two major smelters and led to the closure of the Strait of Hormuz. This event significantly disrupted the supply of both finished metal and raw materials, causing aluminum prices to skyrocket to a four-year peak by early June.

Following the conclusion of a peace deal, the Strait of Hormuz reopened, and market panic subsided. Prices subsequently fell to their lowest point in over four months. Analysts are now assessing whether the conflict left a lasting impact on supply or if the recovery is temporary. Goldman Sachs recently revised its aluminum price forecast downward, noting that supply from Middle Eastern smelters is rebounding faster than initially expected.