30 March 2026 – In response to Israeli missile strikes, Iran attacked and damaged two major aluminium mills in the Gulf region over the weekend. Aluminium prices jump higher. Will the Thyssenkrupp and Jindal Steel deal fail over pension liabilities?
Gulf conflict hits steel and aluminium mills in the region
After three Iranian steel mills had been hit and damaged by Israeli missiles last week, Iran retaliated over the weekend by attacking and damaging two major aluminium mills in the region that produce alumina and primary aluminium. The exact extent of the damage is not yet known. Roughly nine percent of global aluminium supply comes from the Gulf region.
Even before that, the ongoing fighting and the closure of the Strait of Hormuz had already caused disruptions in the supply chain. But aluminium is not the only sector affected: a major producer of steel, iron ore pellets and direct reduced iron (DRI) was also forced over the weekend to declare force majeure.
Aluminium prices jump higher
Aluminium prices rose sharply in response to the weekend attacks. In Asia, prices increased by more than 3.4%, while in Europe they jumped by more than 5% shortly after the start of trading and were last seen at around USD 3,435 per tonne.
Nickel and copper moved in a stable sideways range in Asian trading today and started the week calmly on the European commodities exchange LME.
Will the Thyssenkrupp and Jindal Steel deal fail over pension liabilities?
Talks between Thyssenkrupp Steel Europe (TKSE) and Jindal Steel International over a possible sale of the German steelmaker are at risk of collapsing, according to sources familiar with the matter. After nearly six months of negotiations, both sides are struggling to bridge key differences, making the completion of the sale increasingly unlikely, according to media reports.
Alongside energy costs, Thyssenkrupp’s very high pension liabilities, reportedly amounting to as much as EUR 2.5 billion, are cited as the biggest obstacle to a takeover.
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