CITIC Securities: Rising tensions in the Middle East may trigger an unexpected surge in aluminum prices
March 4, 2026
CITIC Securities' research report states that the renewed conflict between Israel and Palestine has significantly increased the risks of aluminum production capacity, shipping capacity and energy supply in the Middle East region. The subsequent disruptions in the aluminum industry chain in the Middle East and the risk of a secondary energy crisis overseas cannot be ignored. Reviewing the energy crisis from 2021 to 2022, the maximum increase in aluminum prices and the sector was 60%/100%.
Looking ahead, the rising concerns over supply in the aluminum industry may lead to an increase in prices that exceeds the expectations of CITIC Securities. Coupled with the strong long-term supply and demand dynamics in the aluminum industry, we remain optimistic about the synchronized rise in price and valuation of the aluminum sector.
