The effect of the US-Israeli strikes on Iran on the aluminum industry intensified on Tuesday after QatarEnergy announced it was halting metal production.
Aluminum prices on the London Metal Exchange climbed as much as 3.8% to a one-month high of $3,315 per ton before settling at $3,250 as of 15:41 GMT.
European aluminum premiums rose to $378 per ton for March and $428 for April, marking the highest levels in three and a half years. Qatar accounted for less than 1% of the EU’s primary aluminum imports in 2025, according to Trade Data Monitor.
Nonetheless, traders said the Qatar shutdown sparked concerns that other producers in the region might also halt production. Gulf Cooperation Council (GCC) countries supplied 8% of the world’s aluminum last year.
“The region is both a significant producer and exporter of aluminum by sea and also relies on imports of bauxite and alumina to keep smelters running,” Morgan Stanley noted.
