Aluminum Prices Hover Near 4-Year High

2026-03-12 08:34 By Judith Sib-at 1 min. read

Aluminum futures in the UK fell to around $3,470 per tonne but remained close to its highest level in nearly four years, amid fears of a deeper global supply squeeze.

The Iran war has shut the Strait of Hormuz, preventing shipments from the Persian Gulf, which accounts for roughly 9% of global aluminum output.

Two major smelters, one in Qatar and another in Bahrain, have been forced to suspend deliveries.

Output from China, the world’s largest producer, is unlikely to fully compensate for these disruptions as production is expected to stall this year after surpassing the government-imposed cap of 45 million tonnes in 2025, aimed to curb overcapacity, while its expansion in Indonesia faces challenges from rising energy costs and regulatory hurdles.

Reflecting tightening market conditions, Rio Tinto offered aluminum to Japanese buyers at a premium of $350 per tonne for second-quarter deliveries.

These supply risks come at a time when demand from emerging industries continues to rise.



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