The London Metal Exchange (LME) metals price index rose to an all-time high on Thursday as wars in the Middle East sent copper and aluminum prices soaring.
Over the past four weeks, an index tracking the prices of six percent of nearly non-ferrous metals, Bloomberg.
Aluminum jumped more than 15 percent in the period, as the Middle East accounted for about 10% of world production of this metal. Copper rose in price by 11%. The two metals account for about 75% of the index.
JPMorgan Chase analysts have warned that the global aluminum industry is heading toward a “black hole” and long-term, significant supply shortages for the metal after Iran attacked two major aluminum smelters in the UAE and Bahrain last month. Supplies are also hampered by the blockade of the Strait of Hormuz.
On Friday, metals mainly fell in price on expectations of a settlement to the Middle East conflict. Prices for aluminum and copper fall by 0.4%.
