Rio Tinto (RIO) and Century Aluminum (CENX) have raised premiums on aluminum billets in the US by about 12% following supply disruptions caused by the Iran war, Bloomberg reported Wednesday, citing people familiar with the matter.

Both companies have increased the premium by about 3 cents a pound, or $110 a ton, above pre-war levels, with Rio also pushing customers toward multiyear contracts at the higher prices, the report said.

The Iran war has disrupted commodity flows from the Persian Gulf, which supplies nearly 20% of US aluminum imports, forcing US buyers to rely more on higher-priced domestic supply, the report added.

Rio Tinto and Century Aluminum declined to comment to Bloomberg. The companies didn't immediately reply to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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