South32 Ltd's stock soared 8.19% during intraday trading on Monday, as aluminium prices surged following supply disruptions in the Middle East.
The rally comes after aluminium prices on the London Metal Exchange jumped 6% to approach four-year highs. This price spike was triggered by Iranian attacks over the weekend that damaged facilities at two of the Middle East's largest aluminium producers - Emirates Global Aluminium and Aluminium Bahrain.
These Gulf producers account for approximately 9% of global aluminium supply. The attacks have raised concerns about potential supply constraints, benefiting other aluminium producers like South32, which saw its shares rally alongside other Australian-listed alumina companies.