Yunnan Aluminium Co LtdYunnan Aluminum benefits from expected supply disruptions due to Hormuz blockage.
Concerns over aluminum supply triggered by the blockage of the Strait of Hormuz amid US-Iran tensions sent the non-ferrous aluminum sector swinging higher during the session on July 23. By the midday break, industry giant Hongqiao Holdings, with a market value exceeding 260 billion yuan, had hit its daily limit up, along with Nanshan Aluminum. Zhongfu Industrial, Tianshan Aluminum, Huafon Aluminum, and Yunnan Aluminum all surged more than 5 percent. On the news front, US President Trump said that every time Iran fires at ships in the Strait of Hormuz, the US will bomb and destroy an Iranian bridge or power plant. Iran responded by threatening to strike the power supplies of US allies if attacked, declared the strait remains closed, and warned it would not allow a single drop of oil to be exported from the region if the US takes action. The Middle East accounts for nearly 10 percent of global aluminum production capacity, and its raw materials and finished products are highly dependent on shipping through the Strait of Hormuz. The expectation of supply disruptions directly triggered the sector's move. In addition, international crude oil prices jumped again, with New York light sweet crude futures settling at 86.83 dollars a barrel and London Brent crude futures at 94.07 dollars a barrel. Zhongtai Securities noted that the widening overseas electrolytic aluminum supply gap may persist longer, advising active positioning in the electrolytic aluminum sector for defense. Guohai Securities maintained its recommend rating on the aluminum industry.
Yunnan Aluminium Co LtdYunnan Aluminum benefits from expected supply disruptions due to Hormuz blockage.
Tianshan Aluminum Group Co LtdTianshan Aluminum surges on supply fears from Strait of Hormuz closure.
Shandong Nanshan Aluminium Co LtdStrait of Hormuz blockage threatens aluminum supply, benefiting Nanshan Aluminum as a producer.
Henan Zhongfu Industrial Co LtdSupply disruption fears from Hormuz closure boost Zhongfu Industrial, a major aluminum producer.
Shanghai Huafon Aluminium CorpAluminum supply concerns from Middle East tensions lift Huafon Aluminum shares.
Shandong Hongchuang Aluminum Industry Holding Co Ltd