The price of aluminum has surged by almost 50% in the last year, reaching multi-year highs amid pressure due to the Iran war, domestic tariffs, and more. The shutdown of the Strait of Hormuz has had a particularly strong impact, given its critical role in the transmission of aluminum through the Middle East to other parts of the world.
Higher aluminum costs have weighed on companies relying on the metal across a variety of industries, including automotive firms like Ford Motor Co. (NYSE: F) and beverage firms like Keurig Dr Pepper (NASDAQ: KDP). All of these businesses must prepare mitigation strategies if material costs remain elevated to protect their margins.
