ShouChuang Futures: Persian Gulf aluminum companies face import and export restrictions, leading to a strong rise in aluminum prices

Amid the geopolitical conflict in the Middle East, the Strait of Hormuz has been closed. As Qatar Aluminum has begun operations to fully resume the previously shut-down facilities, Bahrain Aluminum is also temporarily unable to export to fulfill contracts due to the Strait blockade. In the short term, disruptions to global aluminum supply have intensified. Last night, aluminum prices opened higher at 25,000. Today, aluminum prices continue to rise strongly, with the main contract touching 25,500 at the high end. Although domestic aluminum prices are constrained by high inventory levels, the Middle East’s aluminum producers have repeatedly been blocked one after another, with many unexpected developments. As a result, aluminum prices overall still remain strong. If the Strait of Hormuz continues to be closed, aluminum prices in the short term may continue to move higher. (Chuangchuang Futures)