London Metals Index at Record High on Aluminum ‘Black Hole’ Fear
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meco0xte4lzal1gtyqmblcvn_media_dl_1.png London Metal ExchangeArticle content(Bloomberg) — Industrial metals jumped to a record high on the London Metal Exchange, driven by gains in aluminum after the Middle East war disrupted supplies, as well as a recent revival in copper.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentAn LME Index, which tracks six major metals, has rallied by almost 12% over the past four weeks and was at an all-time peak on the close on Thursday. Aluminum has risen about 15% since the start of the Iran war, with around 9% of global output coming from the Middle East. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentAluminum has the biggest weighting on the LME gauge and, together with copper, the two metals make up almost three-quarters of the index. Article contentArticle contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!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.Article contentJPMorgan Chase & Co. has warned the aluminum industry was heading toward a “black hole” as a serious, prolonged supply deficit is hitting the market after supply losses escalated dramatically in the wake of Iranian strikes directly targeting two key smelters in Abu Dhabi and Bahrain at the end of last month. A double blockade of the Strait of Hormuz — by the US and Iran – is also keeping shipments stranded. Article contentBut while the waterway remains closed, hopes that a ceasefire between the US and Iran will be extended and signs the two sides may be moving closer to a peace deal have aided other metals. They were hit by soaring energy costs and fears of slowing global growth due to the war, but have recovered in recent weeks on signs the conflict might be winding down.Article contentPresident Donald Trump claimed on Thursday, without evidence, that Iran had agreed to terms it has long resisted, including giving up ambitions for a nuclear weapon. Tehran hasn’t confirmed it’s made concessions. Article contentArticle content“Traders are building back positions in base metals and front-running the move, even though the Iran war has yet to be resolved,” said Gao Yin, an analyst at Shuohe Asset Management Co. “They also like to trade on the certainty of aluminum supply disruptions.” Article contentMercuria Energy Group and BMO Capital Markets forecast this week that copper would surpass a record high hit in January. They cited Chinese buyers coming back to the market and a looming decision on tariffs from the White House that’s encouraging more shipments to the US. Copper has rallied 11% in the last four weeks, and is around 3% off its all-time closing price peak.Article contentThe LMEX Metals Index was up 3.6% this week through Thursday. Most metals were down on Friday. Aluminum fell 0.3% to $3,632.50 a ton as of 11:54 a.m. in Shanghai. Copper dipped 0.3%, while nickel rose 1.8%.Article contentTrending Canadian quantum company Xanadu soars to $16 billion valuation after Nvidia release Innovation Posthaste: What Mark Carney's gas tax cut could mean for the Bank of Canada News A rise in mortgage rates may ‘pull the rug' out from under the spring housing market, says CREA Mortgages Canada presses for wider trade agreement in talks with U.S.
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