Aluminum Surges to 4-Year High

2026-03-06 11:06 By Andre Joaquim 1 min. read

Aluminum futures in the UK surged to $3,350 per tonne in March, the highest in nearly four years, as the outbreak of war in the Middle East magnified an already tight supply backdrop.

Iran struck targets in all GCC countries, driving major producers to stop aluminum refining activity and risking the suspension of operations in the region that produces 10% of global supply.

Qatar halted its aluminum operation with Norsk Hydro in the country and Bahrain's Alba declared force majeure.

Additionally, warehouses were isolated from clients as Iran attacked cargo vessels crossing the Strait of Hormuz.

Elsewhere, output in China is expected to stall this year as it surpassed the cap of 45 million tons in 2025, in line with the government's aim to limit overcapacity in key good producing sectors, while smelters struggle to build new plants in Indonesia amid higher energy costs and local regulations risks.

The developments come as stocks at the LME and COMEX are already near record lows.



News Stream
Aluminum Holds Losses
Aluminum futures in the UK hovered around $3,250 per tonne, holding their retreat from a two-month high as a rising US dollar weighed on dollar-priced commodities. The greenback firmed up as stubbornly hot US inflation prompted traders to increase bets on a Federal Reserve rate hike later this week. Still, aluminum remain underpinned by tight supply conditions. The ongoing US-Iran conflict has disrupted aluminum supply from the Middle East, with GCC production declining 44% year-on-year in July. The region was responsible for around 10% of global production before the war. LME inventories remained close to a 36-year low, while SHFE stockpiles continued to fall, pointing to limited availability in the physical market. However, the supply outlook could improve, with several smelters restarting and ramping up previously curtailed capacity, as well as pursuing expansion projects. Rising aluminum exports from top producer China could also help ease supply constraints and limit price gains.
2026-09-14
Aluminum Holds at 4-Week High
Aluminum futures in the UK were at $3,340 per tonne, their highest level in four weeks, supported by persistent supply tightness and shrinking inventories. The ongoing US-Iran conflict has crimped aluminum flows from the Middle East, with GCC output falling 44% year-on-year in July. LME inventories remained near a 36-year low, while SHFE inventories fell 3% from the previous week, underscoring tight conditions in the physical market. Meanwhile, the Alunorte plant in Brazil, the world’s largest alumina refinery outside China, temporarily cut production to 50% of capacity in August, although output was subsequently restored to full capacity following a temporary terminal access agreement with its gas supplier. Some of these supply pressures could also be partly eased by planned capacity restarts and expansion projects among several producers, as well as rising exports from China, the world’s largest producer.
2026-09-09
Aluminum Hits 4-week High
Aluminum increased to 3348.00 USD/T, the highest since August 2026. Over the past 4 weeks, Aluminum gained 0.32%, and in the last 12 months, it increased 27.29%.
2026-09-08