Asian Aluminum Stocks Rise as Concerns Linger Over Supply Squeeze

By Megan Cheah

Aluminum stocks rose in Asia, supported by concerns that the metal's supply squeeze could continue, even after President Trump announced a two-week cease-fire with Iran.

The metal has recently come under the spotlight as strikes in the Middle East disrupted smelter production and damaged critical infrastructure. The region accounts for around 9.0% of global aluminum production, meaning that disruptions in the Gulf would materially tighten global supply, ING commodities strategists said in a note.

In Hong Kong, aluminum producer China Hongqiao Group rose 2.7% on Wednesday, while Aluminum Corp. of China's Hong Kong shares added 5.3% and its Shanghai-listed stock gained 6.8%.

Shares of China Aluminum International Engineering, which supplies engineering services to the nonferrous metal industry in China, rose 5.1% in Hong Kong. Its China-listed stock advanced 5.0%.

Japan's Daiki Aluminum Industry, which sells secondary aluminum alloy, rose 3.1%. Miner Alcoa's Australian stock climbed 3.7%, while Rio Tinto's shares gained 4.5%.

The stock gains come amid recent rises in aluminum prices, with the three-month contract on the London Metal Exchange trading 0.4% higher at 3490.50 a metric ton in late morning.

"LME aluminum prices are up more than 10% since the start of the Iran war, reflecting a rising geopolitical risk premium and growing concern that Middle Eastern disruptions could translate into sustained tightness rather than short-lived supply shocks," said ING strategists Ewa Manthey and Warren Patterson.

A halt at Emirates Global Aluminium's Al Taweelah smelter, producer Aluminium Bahrain's reduced operations and earlier curtailments at Norsk Hydro and QatarEnergy's Qatalum smelter could take around 3  million tons of annual capacity offline--nearly half of Middle Eastern aluminum production, according to ING.

Write to Megan Cheah at megan.cheah@wsj.com

(END) Dow Jones Newswires

April 08, 2026 00:23 ET (04:23 GMT)