Iran war tightens ‘super-squeeze’ in metals markets
Financial Times 2026-06-11 04:00:26
Context: A recent escalation in the Iran war has led to a significant disruption in global metal markets, causing a sharp increase in prices of essential metals such as copper and aluminium. The conflict has resulted in a tightening of supply chains, creating a "super-squeeze" in the metals market. This development has severe implications for industries that rely heavily on these metals, including construction, manufacturing, and electronics.
Key Facts
- The conflict in Iran has resulted in a significant reduction in the supply of copper and aluminium, leading to a sharp increase in prices, with copper prices rising by 10% and aluminium prices increasing by 15% in the past week alone. The global copper market was already experiencing a shortage before the conflict in Iran, with the International Copper Study Group estimating a global deficit of 250,000 tonnes in 2023. The conflict has further exacerbated the shortage, with major copper-producing countries such as Chile and Peru facing difficulties in maintaining their production levels due to logistics and transportation issues.
- The aluminium market is also experiencing a severe shortage, with prices rising by 20% in the past month, driven by a combination of supply chain disruptions and strong demand from the automotive and aerospace industries. The global aluminium market was already facing a shortage before the conflict in Iran, with the International Aluminium Institute estimating a global deficit of 1.5 million tonnes in 2023. The conflict has further tightened the market, with major aluminium-producing countries such as Australia and Canada facing difficulties in maintaining their production levels due to logistics and transportation issues.