HSBC: Global Commodities Market Enters a “Super Squeeze”

HSBC released a research report stating that the global commodities market is experiencing a “super squeeze” driven primarily by supply disruptions. It noted that if the Strait of Hormuz were to face a prolonged, substantive closure, global commodity inventories would be depleted at an accelerated pace, with some commodities potentially approaching a price inflection point. The report pointed out that the Middle East conflict has already disrupted aluminum smelting capacity, pushing aluminum prices to a four-year high; copper prices, meanwhile, are mainly supported by a recovery in end-user demand and are nearing USD 14,000 per ton. HSBC also highlighted tightening supply pressures across crude oil, liquefied natural gas (LNG), agricultural products, and industrial metals.