Aluminum Hits 3-year High

Aluminum decreased to 3224.00 USD/T, the lowest since March 2026. Over the past 4 weeks, Aluminum lost 12.28%, and in the last 12 months, it increased 25.28%.

Aluminum futures in the UK dropped to around $3,230 per tonne, hitting a three-month low, amid prospects for the resumption of metal exports from the Persian Gulf following progress in US-Iran talks. The two countries have agreed on a roadmap toward a final agreement following their first round of high-level talks, raising expectations for a return of supplies from the Middle East, which makes up roughly 9% of global output. However, uncertainties remain, as major Gulf producers continue to face operational disruptions following earlier Iranian attacks. Additional downside pressure comes from rising output in China, the world’s largest producer, and increased production from smelters in Indonesia. On the demand side, weak economic data from China has added concerns, as the country is also one of the biggest consumers of the metal. A stronger US dollar is also weighing on prices, as it makes dollar-priced commodities more expensive for buyers using other currencies.

Aluminum futures in the UK hovered around $3,400 per tonne, near an over two-month low, as an interim US-Iran peace deal eased supply concerns. The two nations remotely signed a memorandum of understanding to end their war and reopen the Strait of Hormuz, allowing metal exports from the Persian Gulf, which accounts for roughly 9% of global aluminum production, to resume. Still, there remains uncertainty over how quickly supply chains can recover, given as key Gulf producers are facing operational challenges following earlier Iranian attacks. Additional downside risks come from rising output in China, the world’s largest producer, and increasing supply from smelters in Indonesia. In addition, weak economic data from China has raised concerns over demand as the country is also one of the biggest consumers of the metal. Further weighing on prices, the Federal Reserve’s hawkish hold lifted the US dollar, making greenback-priced commodities expensive for foreign buyers.