Morgan Stanley: Middle East conflict impacts aluminum supply, aluminum prices face upward risk in 2026.

Morgan Stanley analysts stated that the aluminum supply losses caused by the Middle East conflicts may continue until 2026. The bank said that restarting affected operations could take up to 12 months. Therefore, Morgan Stanley analysts believe there is an "upward risk for aluminum prices in 2026." The bank pointed out that as the physical metal market tightens, regional premiums in Japan, Europe, and the United States are rising relative to the London benchmark price. Of course, Morgan Stanley added that slowing global economic growth could weaken demand, limiting the increase in aluminum prices.