Aluminum-related shares surged in South Korea on Tuesday, as concerns that U.S.-Iran truce talks could fall apart fueled expectations of supply disruptions and higher prices.
According to the Korea Exchange, Sam-A Aluminum was up 23.08% at 72,000 won as of 1:56 p.m., from the previous session’s close. The stock rose as high as 76,000 won during the session.
Other aluminum-linked shares also gained, including Choil Aluminum, up 12.94%, Namsun Aluminum, up 2.90%, and Aluko, up 2.53%.
In a report Tuesday, Samsung Futures researcher Ok Ji-hoe cited global commodities broker Mercuria as saying the global aluminum market is facing a severe “black swan” risk this year due to the war in the Middle East.
Mercuria estimated the aluminum market could face a supply shortfall of at least 2 million tons by the end of this year. The Middle East has about 7 million tons of annual aluminum smelting capacity, about 9% of expected global supply this year.
Ok said the U.S. aluminum premium hit a record high of $2,521.5 per ton, while the European aluminum premium rose to $599 per ton, the highest in about four years.
* This article has been translated by AI.
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