Middle Eastern aluminum plants are repeatedly attacked, and the global aluminum market may face a significant supply and demand gap.

Ask AI · Aluminum prices soar to four-year highs, how does the Middle East conflict affect the global supply chain?

According to reports, a research report released by UK-based Wood Mackenzie Consulting on April 1st disclosed that the factory previously attacked in the UAE by Global Aluminum has suspended operations. Meanwhile, Bahrain Aluminum’s smelting facilities also suffered severe damage in the earlier attack. The attacks on these two aluminum plants in the Gulf region continue to impact the global aluminum metal market. As of the close on April 1st, the three-month aluminum price on the London Metal Exchange closed at $3,531.50 per ton, reaching a four-year high. Analysts expect that if the Middle East conflict persists and the Strait of Hormuz remains closed for an extended period, the global aluminum market may face a significant supply-demand gap by 2026. On one hand, the Middle East accounts for about 9% of global aluminum supply and is an important source for manufacturing in Europe, Asia, and the United States; on the other hand, it is difficult for other regions to quickly fill the gap in the short term. Goldman Sachs Group predicts that in the second quarter of 2026, the global aluminum market will face a supply shortfall of approximately 900k tons. (CCTV Finance)