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.



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