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Aluminum Surcharges Surge 12% as Middle East War Disrupts Supply

Bloomberg Markets •
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Rio Tinto Group and Century Aluminum Co. have raised premiums on semi-processed aluminum in the US by approximately 12% in recent weeks, according to sources familiar with the matter. The price hike follows supply disruptions from the Middle East after the Iran war interrupted imports of this critical industrial metal.

The premium increase affects a key aluminum product used across manufacturing and construction sectors. Rio Tinto and Century Aluminum are among the world's largest aluminum producers, making their pricing decisions particularly influential for the broader market. The Middle East has traditionally been a significant source of aluminum imports to the US.

This development highlights how geopolitical conflicts can rapidly impact commodity markets and industrial supply chains. The 12% premium hike represents a significant cost increase for US manufacturers who rely on aluminum as a raw material. Companies in automotive, aerospace, and packaging industries will likely face higher input costs as a result of these supply chain disruptions.