Mercuria Energy Group Ltd. has emerged as the dominant trader behind a surge in orders to take physical delivery of aluminum on the London Metal Exchange, as traders prepare for a major supply disruption. The move comes amid concerns about the effective closure of the Strait of Hormuz, a critical shipping route for commodities.

Aluminum traders are rushing to secure physical metal as geopolitical tensions threaten to choke off supplies from the Middle East. The Strait of Hormuz handles roughly 20% of global oil shipments and serves as a vital corridor for industrial metals. With tensions escalating, market participants are bracing for potential price volatility and supply shortages.

The LME aluminum market is experiencing heightened activity as traders position themselves ahead of possible supply constraints. Mercuria's aggressive positioning suggests the firm anticipates significant market dislocation, potentially benefiting from both price movements and arbitrage opportunities between physical and futures markets. This development highlights how quickly geopolitical events can reshape commodity trading strategies.