HSBC Warns of Commodity Market 'Super Squeeze' Amid Supply Disruptions

HSBC has released a report indicating that the global commodity market is experiencing a 'super squeeze' driven by supply disruptions. According to ChainCatcher, the report highlights that a prolonged closure of the Strait of Hormuz could accelerate the depletion of global commodity inventories, pushing some commodities towards critical price inflection points. The report notes that the Middle East conflict has already impacted aluminum smelting capacity, driving aluminum prices to a four-year high. Copper prices are also nearing $14,000 per ton, primarily supported by a recovery in end-user demand. Additionally, HSBC mentions that the supply of crude oil, liquefied natural gas, agricultural products, and industrial metals is under increasing pressure.