HK Stock Market Move | The aluminum industry stocks collectively rise, attacks on two major aluminum plants in the Middle East cause supply concerns, and London Aluminum surged 6% this morning.

The aluminum industry collectively rose, as of the time of writing, CHUANGXIN IND(02788) increased by 9.97% to 30.44 Hong Kong dollars; NANSHAN AL INTL(02610) increased by 7.74% to 56.4 Hong Kong dollars; Aluminum Corporation Of China(02600) increased by 6.57% to 11.52 Hong Kong dollars; CHINAHONGQIAO(01378) increased by 4.12% to 35.92 Hong Kong dollars. On the news front, Iran attacked two aluminum production facilities in the Middle East, exacerbating the global supply tightness. The London Aluminum price surged 6% this morning to $3492 per ton. According to Xinhua News Agency, two large aluminum plants in the Gulf states of Bahrain and the United Arab Emirates confirmed that they were attacked by Iran recently. Bahrain Aluminum Company stated that its factory was attacked by Iran on the 28th, with 2 people lightly injured, and the company is assessing property losses. The company and its parent company had previously declared a "force majeure" due to shipping disruptions in the Strait of Hormuz, reducing production by about 20%. In addition, Emirates Global Aluminium, one of the world's largest aluminum producers, also confirmed being attacked by Iran on the 28th. Huaxi Research Report pointed out that the Middle East's electrolytic aluminum production capacity accounts for nearly 9% of the global total, and escalating geopolitical conflicts directly exacerbate regional production risks. The disruption of shipping in the Strait of Hormuz further disturbs supplies. In addition, the cost inversion is severe in high electricity cost production areas such as Europe, the US, and Africa, with Mozambique's 580,000 tons of capacity fully suspended. The potential global reduction in production could reach 150-200 thousand tons per year, with a projected 3%-5% decrease in global supply for the year, indicating an irreversible tightening supply trend.