Aluminum Surcharges Jump 12% as Middle East Conflict Squeezes US Supply

Key Details Rio Tinto and Century Aluminum have raised premiums on aluminum billets by approximately 3 cents per pound, or $110 per ton, following Middle East supply disruptions. Both major US suppliers implemented these increases in recent weeks, with Rio also pushing customers toward multiyear contracts at the higher rates. Why It Matters The Middle East supplies nearly one-fifth of US aluminum imports. Disruptions are forcing American manufacturers to source from the already-tight domestic market at premium prices. Combined with the Trump administration's 50% import tariffs, US buyers now face the highest aluminum costs globally. Market Impact Aluminum prices have surged over 10% since late February fighting began. The US Midwest premium, added to global benchmarks for regional delivery, hit a record $1.1325 per pound. Producers layer additional product premiums on top of this, further straining costs for appliance makers, beverage can manufacturers, and automakers. Looking Ahead The Aluminum Association noted companies are shifting supply chains and shipment routes to adapt. A recent two-week ceasefire agreement and pledges to reopen the Strait of Hormuz provide some relief, though market volatility remains high as the industry adjusts to sustained cost pressures.