We had another very sloppy week in the US equity markets, although commodities fared better. All three major equity indices are now in correction territory (down 10% or more from their highs) on account of both the Iran war and the rising interest rates the conflict is generating.
Rio Tinto's aluminum supply agreement with Prysmian highlights tightening redraw rod availability in North America as tariffs, smelter closures and cable demand reshape supply.
The Oklahoma aluminum smelter project backed by Emirates Global Aluminium and Century Aluminum appears to be advancing toward a power deal, though elevated electricity costs and high Midwest premiums continue to complicate the economics.
A look at Alcoa's idled US smelter and refinery sites shows how electricity economics and capital discipline are reshaping industrial redevelopment toward data center infrastructure.
Alcoa Corp. plans sell 10 of its closed or curtailed sites to one of the aluminum industry's biggest competitors for electricity: the data center industry.
The company expects to invest more in 2026.
LS Cable's $50 million Tarboro expansion adds medium-voltage CCV capacity.
The smelter had been the largest domestic source of high-purity primary aluminum used in aerospace and defense applications—arguably falling under the national security rationale of Section 232.
Rising global capital and power costs, driven by China's production cap and higher-cost expansion in Indonesia, are structurally resetting aluminum's incentive price, making higher LME levels necessary to unlock new primary capacity outside China.
We saw solid gains in most markets this past week, but intraday swings were massive as high volatility persists. In base metals, tin was the biggest winner for the week (up almost 13%) followed by nickel (up by 5.2%). Copper and aluminum rose by about 4% each, followed by lead (2.1%) and zinc (up by 1%). The cash to-three month spreads moved into a backwardation for both copper and aluminum. But contangos were evident in the rest of the group.