Persian Gulf’s Aluminum Prospects Clouded by War, Says Goldman

War in the Persian Gulf has clouded its prospects as an important source of additional aluminum supply in coming years, according to Goldman Sachs Group Inc.Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — War in the Persian Gulf has clouded its prospects as an important source of additional aluminum supply in coming years, according to Goldman Sachs Group Inc.Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.The region already accounts for a fifth of global production outside China, and was expected to see more capacity additions in coming years. The supply disruptions triggered by the conflict — including the halt of a major plant struck by Iran’s military — have complicated that expansion, Goldman’s co-head of China equities Trina Chen said in a Bloomberg TV interview.“We would expect more smelters to be built here because of the energy advantage, and that would supply global demand growth in future,” Chen said on Thursday. But that’s now questionable, which raises the risk of higher long-term prices for the metal, she added.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Aluminum in London climbed to a four-year closing high on Wednesday, after the Iranian attack forced the region’s top producer Emirates Global Aluminium to halt one of its smelters. That puts the market back at levels seen in the the aftermath of Russia’s invasion of Ukraine. The effective closure of the Strait of Hormuz threatens further production cuts across the region as raw materials stockpiles run out.Emirates Global stopped operations at its Al Taweelah smelter after Iranian missiles and drones knocked out power supplies. That forced the unit into an uncontrolled shutdown in which molten metal cools and hardens while still running through the equipment.Aluminum plants subject to a “pot freeze” can take six to eight months to get back up and running, Chen said. The company “also has to make a decision on whether the operating environment will be sustainably stable, so that will also itself take some time,” she said.Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.365 Bloor Street East, Toronto, Ontario, M4W 3L4© 2026 Financial Post, a division of Postmedia Network Inc. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.You can manage saved articles in your account.and save up to 100 articles!You can manage your saved articles in your account and clicking the X located at the bottom right of the article.