According to the Mining.com website citing Bloomberg News, the blockage of the Suez Canal has further exacerbated the rare shortage of aluminum products for transportation and construction.
Due to the soaring production of European factories and the replenishment of inventory by industrial users before the lifting of the epidemic lockdown, the supply of special products such as aluminum billet was quickly tightened, pushing the benchmark aluminum price to the highest since mid-2018.
Several Middle Eastern suppliers, including UAE Global Aluminum and Bahrain Aluminum are all professional manufacturers in this industry. Although there is no sign of any aluminum products being blocked by the Suez Canal, if the situation continues, cargo ships heading to Europe will be at risk. To drag the "Ever Given" off the scene will have to wait at least until Wednesday.
Short-term transportation interruptions are generally not a problem for a well-supplied aluminum market, but the competition for aluminum products in Europe has caused consumers to pay for freight soaring. Market analysts believe that the Suez Canal crisis will make this situation worse.
"It's a bit crazy," said Kamil Wlazly, senior metal analyst at Wood Mackenzie in a telephone interview. "There are many things that are more important than the Suez Canal being blocked. This is just an offshoot."
Similarly, American aluminum billet buyers are also facing shortages.