Aluminum jumped after Qatar’s state-owned energy producer said it would halt output of the metal as the Iran war throttles supply lines for smelters throughout the West Asia.
Prices rallied as much as 3.8% in London before paring some gains. QatarEnergy halted the production of aluminum and some chemicals, as it grappled with the consequences of Iranian attacks that forced the shutdown of its major liquefied natural gas plant. QatarEnergy holds a 50% stake in Qatalum, a major regional producer of the metal alongside joint-venture partner Norsk Hydro ASA. Hydro said the specific implications for aluminium production at Qatalum are currently unclear .
Aluminum has bucked a broader downturn in metals markets as the Iran crisis deepens, with traders focused on potential supply dislocations or production cuts in a region responsible for about 9% of global output. Qatar’s announcement adds to signs of growing stress for producers in the region and their customers in markets spanning Asia, Europe and the US.
(Bloomberg)
