Aluminum Falls Further
2026-03-10 07:39
By
Judith Sib-at
1 min. read
Aluminum futures in the UK dropped to around $3,360 per tonne, retreating further from a four year-high after President Trump’s remarks eased concerns over Middle East supply disruptions.
Trump indicated the conflict with Iran would end soon as he faced mounting economic and political pressures following days of dramatic volatility in oil markets.
However, supply risks persist, as the closure of the Strait of Hormuz has disrupted shipments from the Persian Gulf, which accounts for roughly 9% of global aluminum supply.
Output from top producer China is also unlikely to fully offset these disruptions, as its supply is capped by 45 million tons this year under government measures to limit overcapacity in key good producing sectors, while expansion in Indonesia faces challenges from rising energy costs and regulatory hurdles.
These developments come against the backdrop of already critically low aluminum inventories at both the LME and COMEX.