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Aluminum squeeze tightening as Hormuz stays shut — buy the miners cashing in

The closure of the Strait of Hormuz is choking off global shipments of aluminum and other raw materials, causing warehouse stockpiles to shrink and aluminum prices to surge.

Idea

The Strait of Hormuz shutdown is blocking a critical shipping lane for raw aluminum and alumina, and exchange inventories are plunging as a result. When supply shrinks this fast, producers like Alcoa and Century Aluminum command much higher prices for every ton they sell, boosting their profits. As long as the geopolitical crisis keeps the strait closed, this supply squeeze gives aluminum mining stocks plenty of room to run.

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AACENX1D#commodities#geopolitics#supply_squeeze

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