Aluminum Hits Near 4-Year High

Aluminum decreased to 3031.00 USD/T, the lowest since January 2026. Over the past 4 weeks, Aluminum gained 4.06%, and in the last 12 months, it increased 20.13%.

Aluminum futures in the UK fell to $3,100 per tonne, retreating sharply from the over three-year high of $3,270 on January 28th and tracking the aggressive pullback for base metals as traders reconsidered their speculative positions. Trading volumes for base metals in China maintained their unprecedented highs, indicating that speculative traders in the region closed positions after metals tested peaks throughout the week. The moves happened in response to a rebound in the dollar amid the potential of an upcoming Fed Chairman that has called for smaller Fed balance sheets before, while a pessimistic guidance for Microsoft tamed bets that soaring datacenter investment would lift demand for base metals used in infrastructure and electrification. Meanwhile, global supply is due to slow after China hit its 45 million output cap last year, and Chinese smelters displayed some caution in starting new operations in Indonesia.

Aluminum futures in the UK rose past $3,300 per tonne, marking its highest level since April 2022, as tightening global supply coincided with growing demand. Output from China, the world’s biggest aluminum maker, rose to a record 45.02 million tons in 2025, slightly surpassing the government’s 45-million-ton cap aimed at curbing structural oversupply. With China reaching its capacity limit, traders are concerned over how quickly producers elsewhere can boost production to meet rising demand from the energy transition. Supply pressures have been compounded by production disruptions at key smelters in Iceland, Mozambique, and Australia, further limiting near-term availability in the market. Additional support came from a weaker US dollar, which improved affordability for non-US buyers, as well as escalating geopolitical tensions that have heightened concerns over further supply disruptions.