economy
Aluminum prices are surging. Here's how companies are handling the costs
Aluminum's surge since the start of the Iran war is creating cost pressures for some of America's largest companies.
TL;DR
- Aluminum prices have surged over 13% since the U.S.-Israeli strikes on Iran on Feb. 28, reaching multiyear highs.
- The shutdown of the Strait of Hormuz and damaged facilities have reduced global aluminum supply by an estimated 3%.
- Ford expects commodity headwinds to exceed $2 billion, largely due to increased aluminum costs.
- Molson Coors reported a $30 million increase in the cost of goods sold in the first quarter due to rising aluminum prices.
- Keurig Dr Pepper is considering mitigation plans to protect margins if higher aluminum costs persist.
- Analysts forecast limited relief in the near term, citing ongoing Middle East disruptions and increased energy costs for aluminum production.