OCBC: Supply Constraints Expected to Keep Aluminum Prices Elevated in the Short Term

Golden Ten Data reported on March 18 that Jonathan Ng from the research department of OCBC Bank stated in a report that aluminum prices may remain high in the short term due to supply constraints. Aluminum prices have remained strong this year, and the recent price increase is driven by concerns over disruptions in the Middle East supply chain. The Strait of Hormuz is currently effectively closed, and this strait is not only a key transportation route for energy products but also for fertilizers and aluminum. Therefore, prolonged transportation disruptions will simultaneously affect multiple commodities. It is expected that aluminum prices in the second quarter will be $3,500/ton.