Tag: Midwest premium

The first half of 2026 has been turbulent for the aluminum market, with the Iran war sparking the largest supply shock in the history of the industry, CRU Group said.

Aluminum prices retreated as markets priced a return to Middle East stability, but shipping attacks, military strikes and LME indicators suggest that assumption may have outpaced events.

LME aluminum prices, prompt premiums and the US Midwest Premium have moved lower in June, while exchange inventories continue to decline and remain near five-year lows.

AMU's May survey results showed higher obsolete scrap availability as respondents continued reporting elevated freight costs and UBC price expectations moderated.

Global shipping volatility is tightening its grip on metal supply chains. And the risks are not easing; in fact, they’re escalating, according to Anton Posner, CEO of Mercury Resources.

The LME price for aluminum spiked at the start of the US/Israel war on Iran and has lately hovered around $3,400-$3,600 per ton, not yet breaching $4,000.

LME and Midwest premiums are rising, and a conflict in Iran is just one of several challenges the market is facing.

There’s a lot of news to keep track of, so we’re lending a hand with highlights from the past month and what they mean for you.

Midwest aluminum premiums are converging with replacement costs as Gulf supply risks lift duty-paid import replacement near $1.05 per pound.

Markets have been taken aback by the intensity of the conflict and the Iranian retaliatory strikes on at least 14 different countries. Investors were also shaken by the severe disruptions to oil and gas flows coming out of the Persian Gulf.