Amid Middle East conflicts disrupting global supply chains, aluminum prices in the United States continue to face upward pressure. According to informed sources, Rio Tinto PLC and Century Aluminum have recently raised premiums for key semi-finished aluminum products by approximately 12%. Specifically, the two companies increased the premium for aluminum billets by about 3 cents per pound (around $110 per ton), significantly higher than pre-conflict levels. At the same time, Rio Tinto is also encouraging customers to accept multi-year contracts that include higher prices. Both companies declined to comment on the matter. Analysts point out that this round of price hikes reflects the ongoing impact of Middle East tensions on commodity flows. The Persian Gulf region accounts for nearly one-fifth of U.S. aluminum imports, and current supply disruptions are forcing American buyers to turn to the more expensive domestic market, where supplies are already tight. Against this backdrop, rising aluminum prices are further burdening downstream companies and end consumers. Previously, the U.S. government imposed tariffs of up to 50% on imported aluminum, keeping domestic aluminum prices consistently higher than global levels. Now, with additional supply disruptions, price pressures have intensified further. Industry insiders note that producers are leveraging the window of constrained Middle East supplies to enhance their pricing power. Charles Johnson, head of the Aluminum Association, stated that the situation in the Gulf region continues to affect the global aluminum market, forcing companies to adapt by adjusting supply chains, transportation routes, and even metal sources to cope with uncertainty. Data shows that since the outbreak of conflict involving Iran in late February, aluminum prices have risen by more than 10%. The U.S. Midwest premium has climbed to a record high of $1.1325 per pound. However, as market expectations for a de-escalation of tensions grow, prices have seen a short-term decline. On Wednesday, aluminum futures on the London Metal Exchange fell by about 1% to $3,443 per ton, following reports that the U.S. and Iran reached a two-week ceasefire agreement and committed to reopening the Strait of Hormuz.
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