Shares of US aluminum producers surged on Monday following missile strikes by Iran on critical aluminum infrastructure in the Middle East, sparking concerns over global supply.
Alcoa (NYSE:AA) rose 11.5% in early trading, while Century Aluminium (NASDAQ:CENX) gained around 9%, as investors reacted to reports that Iranian attacks damaged major Gulf smelters, including Emirates Global Aluminium and Aluminium Bahrain.
The Middle East accounts for roughly 9% of global aluminum output, meaning even partial shutdowns can quickly tighten supply.
The London Metal Exchange aluminum benchmark jumped 5% to around $3,492 per ton, approaching a four-year high, reflecting market fears of a supply shock. Some facilities have already cut production, with Aluminium Bahrain reducing capacity by about 19%.
Other US producers also saw gains, with Kaiser Aluminium (NASDAQ:KALU) up 3.4% and Constellium (NYSE:CSTM) rising nearly 4%.