Iran war squeezes acid, aluminum, miners’ margins: WoodMac

• •It makes me wonder how long these disruptions will last and what the knock-on effects will be further down the supply chain.
• •What are your thoughts?
• •If you're invested in any miners or related sectors, how are you preparing for or reacting to these kinds of pressures on margins?

Hey everyone,

Just read this Wood Mackenzie article on mining.com (Iran war squeezes acid, aluminum, miners’ margins) and thought it was worth a discussion. The bit about over half the seaborne sulphur trade being disrupted, 11 million bbl/d of crude shut in, and 3-3.5Mt of aluminum output at risk really caught my eye. We've been seeing volatility for a while, but this war-related impact on essential commodities like sulphur (which is crucial for so many industrial processes, not just mining) and aluminum is pretty significant. My own portfolio has some exposure to industrials and materials, and while I’ve tried to diversify, these kinds of geopolitical shocks always make me re-evaluate. I'm thinking specifically about my long-term holdings for retirement; these disruptions could mean higher costs down the line for goods my family consumes, not just for the companies I invest in.

It makes me wonder how long these disruptions will last and what the knock-on effects will be further down the supply chain. Are we looking at a sustained period of higher material costs for manufacturers, or is this more of a temporary blip that the market will absorb relatively quickly? I remember during the early days of COVID, the supply chain issues seemed insurmountable, but things did eventually find a new equilibrium, albeit with some lasting changes. What are your thoughts? If you're invested in any miners or related sectors, how are you preparing for or reacting to these kinds of pressures on margins? Any specific strategies you're considering?