Fastmarkets' Middle East conflict coverage

The aluminium market is being pulled in two directions by the Middle East conflict: upstream feedstocks sit in temporary buffer stocks, while delivering metal to consuming regions is becoming increasingly difficult.

Jeddah in Saudi Arabia and Port of Sohar in Oman are becoming tactical workarounds for base metal exports blocked by the Strait of Hormuz closure, with cargo transiting via land-bridge to other Gulf states, such as Bahrain and the United Arab Emirates – though capacity constraints and elevated logistics costs limit availability, sources with direct visibility of Gulf supply chains told Fastmarkets.

The Mexican aluminium market might be strongly affected by the closure of the Strait of Hormuz, with supply constraints and consequently higher premiums, market participants told Fastmarkets on Tuesday March 10.

European allowances have steadily dropped in recent days amid wide uncertainty in the emissions trading market, defying a sharp spike in Dutch TTF Natural Gas prices prompted by the escalating conflict in the Middle East.

US animal fats and oils markets have moved higher in recent weeks alongside gains in soybean oil futures and diesel values, with improving renewable diesel and biodiesel economics driving stronger demand for feedstocks.

Lundin Mining and BHP published a preliminary economic assessment on February 16 for their Vicuña joint venture, projecting average annual copper production of 395,000 tonnes over the first 25 years of operation as Argentina’s copper concentrate pipeline continues to build. PSJ Cobre Mendocino separately confirmed on February 14 that its feasibility study was under way.