On Monday, June 23rd, aluminum futures contracts on the London Metal Exchange (LME) performed better than copper futures as the US strike on Iran pushed up energy prices - a key cost factor for the energy-intensive metals industry.
At 16:30 Beijing time, the three-month aluminum contract on the LME rose by 0.59% to $2,564.5 per ton.
The most actively traded aluminium contract on the Shanghai Futures Exchange dropped 0.24% to 20,365 yuan per ton, initially rising in line with LME aluminium.
By contrast, LME three-month copper futures rose by 0.07% to $9,640 per ton. Shanghai copper rose by 0.14% to 78,290 yuan per ton.
A metals analyst from a futures company said, "Aluminium is more sensitive to energy prices and therefore reacts more strongly to oil prices. The key now is whether Iran will close the Strait of Hormuz."
He said that the Strait of Hormuz is crucial for the transportation of bauxite and alumina in the Middle East, and electricity accounts for 40% of the total cost of aluminium smelting.
According to CCTV News, it was learned on the 22nd local time that Kusari, a member of the National Security Committee of the Iranian parliament, said that the Iranian parliament has reached a conclusion that the Strait of Hormuz should be closed, but the final decision lies with the Supreme National Security Committee of Iran.
The Strait of Hormuz is located between Oman and Iran, connecting the Gulf of Oman in the east and the Persian Gulf in the west. It is the only sea passage for oil from the Gulf region to be transported to all parts of the world. About one-third of the global seabornated crude oil trade passes through the Strait of Hormuz.
Benchmark oil prices jumped to their highest level since January on Monday as the United States joined forces with Israel to attack Iran's nuclear facilities over the weekend, intensifying supply concerns.
Other metals on the LME, LME three-month zinc rose 1.18% to $2,661.5 per ton. Three-month lead rose by 0.68% to $2,005.5 per ton. Three-month tin futures dropped by 0.12% to $32,645 per ton. Three-month nickel futures dropped by 1.01% to $14,860 per ton.
In terms of metals in Shanghai, Shanghai tin rose by 0.37% to 261,880 yuan per ton. Shanghai lead rose by 0.39% to 16,920 yuan per ton. Shanghai zinc rose by 0.34% to 21,980 yuan per ton. Nickel in Shanghai dropped by 1.13% to 117,440 yuan per ton.
