(March 2): Aluminum climbed on concerns that critical supply routes for Middle Eastern producers will be disrupted by conflict in a region responsible for a significant chunk of global output. Conflict in the Middle East spread over the weekend after the US and Israel attacked Iran, and Tehran retaliated with strikes on multiple countries. Potential disruptions to flows of bauxite or alumina that feed the Middle East’s aluminum smelters present a “very significant risk”, said Li Xuezhi, head of research at Chaos Ternary Futures. Aluminum prices are likely to move higher, he said. The Middle East is a major producer of iron ore pellets, with a 13% global share, according to BMO Global Commodities Research.
