Aluminum Rises to 3½-Year Highs

2025-12-22 08:41 By Judith Sib-at 1 min. read

Aluminum futures in the UK climbed toward $2,970 per tonne, marking the highest since May 2022, after South32 announced that its Mozal smelter in Mozambique will be placed under care and maintenance by March 2026 due to its inability to secure a new power agreement.

The shutdown is expected to tighten global aluminum supplies next year, fueling concerns over an already constrained market.

Supply pressures were compounded by disruptions at Iceland’s Grundartangi smelter, where one potline was suspended due to equipment failure.

Prices were also supported by declining inventories at major Japanese ports, which fell 5.2% month-on-month to 312,100 metric tons by the end of November, and by global producers seeking significantly higher premiums for January-March shipments.

Moreover, China, the world’s largest producer, is expected to approach its 45-million-ton annual output cap.

So far this year, aluminum prices have risen nearly 17%.



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