**Aluminum prices surge due to U.S.-Iran tensions**
Amid ongoing conflict between the U.S. and Iran, aluminum prices soared nearly 10% last week, reaching a three-year high, as disruptions to shipments from the Persian Gulf—a region supplying about 9% of global aluminum—raised supply concerns. Recently pulled back from those highs, analysts suggest that if the conflict persists, it could lead to a significant global aluminum shortage, ultimately benefiting mining companies like Alcoa Corp. (AA), the largest aluminum producer in the U.S.
Global aluminum consumption is projected to increase from 104 million tons in 2024 to an estimated 120 million tons by 2030, driven by rising demand for AI infrastructure. Each megawatt delivered to AI data hubs consumes one to two tons of aluminum, pointing to robust future demand amid tightening supply. Alcoa’s commitment to using renewable energy for 87% of its smelting operations positions it well to capitalize on this growing market, aligning with global decarbonization trends.
