Aluminum prices are rising. Here’s how companies are handling costs

The war between the United States and Iran has sent aluminum prices soaring to multi-year highs, putting cost pressure on companies that make everything from cars to beer cans.

Aluminum prices on the London Metal Exchange have risen by more than 13% since the US-Israel attack on Iran. The commodity is up about 19% so far in 2026, reaching its highest level this year since 2022.

Bernstein analyst Bob Brackett said the closure of the Strait of Hormuz, a key route for aluminum shipments from the Middle East, is driving up prices.

He estimated that 7% of the world’s aluminum comes from the region. The military attack damaged facilities and removed about 3% of global supplies from the market, analysts said.

in fordChief Financial Officer Shelley House said the Iran war has clouded the automaker’s outlook for aluminum, a key component of the F-150. The Detroit-based producer expected commodity headwinds to be more than $2 billion, primarily due to higher aluminum prices, about twice as much as previously expected, House said.

“It’s going to be a little difficult to predict 2027 at this point given the commodity volatility that we’ve seen so far,” House told analysts late last month. “We were already seeing global industry shortages before the Middle East crisis, especially when it came to steel and aluminum.”

Aluminum prices are a key focus for Ford’s investor base, said UBS analyst Joseph Spack. Ford stock has fallen 17% since the U.S.-Iran war began. of S&P500 It rose 5.7% over the same period.

But Spak said in a note to clients last month that Wall Street’s concerns about aluminum prices are “overblown,” adding that Ford is “hedging” its aluminum exposure this year.

Molson Coors Finance Director Tracy Joubert said last week that the cost of goods sold in the first quarter increased by about $30 million compared to the same period last year due to higher prices for aluminum supplied to the Midwest. The parent company of Coors Light and Miller Lite has been using recyclable aluminum cans for more than 60 years and expects prices for the product to rise further this quarter.

Anthony DiSilvestro, CFO Keurig Dr Peppercited aluminum as one of several products whose prices have increased due to the Iran war. DiSilvestro said if these high costs persist for an extended period of time, the makers of Canada Dry and Snapple will need to develop mitigation plans focused on protecting margins.

“Like many consumer goods companies, we have direct and indirect exposure to products affected by the Middle East conflict,” DiSilvestro said on a conference call with analysts last month, using the acronym for consumer packaged goods.

Wall Street doesn’t think relief will come in the short term.

UBS expects aluminum supplies to increase by 0.3% in 2026, down from its previous forecast of 2.4%. The bank cited turmoil in the Middle East and limited scope for capacity expansion in Europe.

Beyond the conflict, Bernstein’s Brackett said, aluminum requires a lot of energy and the price is also tied to the cost of natural gas and coal. Brackett said those prices have also increased as a result of the war, adding further price pressure.

“Aluminum prices rise with input costs,” Brackett said in a letter to customers last week. “Not only supply chain disruptions, but also power source disruptions pose upside risks that could positively impact aluminum prices.”