Aluminum Retreats from Near 4-Year High

2026-03-25 11:08 By Judith Sib-at 1 min. read

Aluminum futures in the UK held near $3,250 per tonne, holding the retreat from a near four-year peak reached on March 12th as traders assess supply developments and demand prospects.

Production has risen in some regions, with Alvance British Aluminium boosting output at its Lochaber smelter by about 10% following US tariff changes.

Global inventories are now above 1.3 million tons, the highest since 2020, underscoring ample supply.

On the demand side, China’s imports have fallen despite a 3% increase in domestic production during the first two months of the year.

Still, the downside for prices remains limited due to supply disruptions caused by the conflict in the Middle East, a region responsible for around 9% of global supply.

Bahrain’s Alba, the world’s largest single-site aluminum producer, shutdown 19% of its 1.6 million tonne-a-year production capacity while Qatalum reduced operations.

Adding further uncertainty, Guinea is actively considering introducing bauxite export quotas.



News Stream
Aluminum Retreats from Near 4-Year High
Aluminum futures in the UK held near $3,250 per tonne, holding the retreat from a near four-year peak reached on March 12th as traders assess supply developments and demand prospects. Production has risen in some regions, with Alvance British Aluminium boosting output at its Lochaber smelter by about 10% following US tariff changes. Global inventories are now above 1.3 million tons, the highest since 2020, underscoring ample supply. On the demand side, China’s imports have fallen despite a 3% increase in domestic production during the first two months of the year. Still, the downside for prices remains limited due to supply disruptions caused by the conflict in the Middle East, a region responsible for around 9% of global supply. Bahrain’s Alba, the world’s largest single-site aluminum producer, shutdown 19% of its 1.6 million tonne-a-year production capacity while Qatalum reduced operations. Adding further uncertainty, Guinea is actively considering introducing bauxite export quotas.
2026-03-25
Aluminum Extends Retreat
Aluminum futures in the UK fell below $3,250 per tonne, extending their retreat from a near four-year high, amid rising concerns about the potential impact of the ongoing Middle East conflict on metals demand. Analysts noted that demand from China, the world's largest producer and consumer, still lags the previous year due to higher aluminum prices, even as operating rates among fabricators have picked up following the Lunar New Year holiday. Prices had surged this month after the US-Israeli strikes on Iran led to shutdowns and shipping disruptions in a region responsible for roughly 9% of global supply. Recently, Bahrain’s Alba, the world’s largest single-site aluminum producer, shutdown 19% of its 1.6 million tonne-a-year production capacity, while Qatar also halted part of its production due to natural gas shortages.
2026-03-18
Aluminum Prices Near 4-Year Highs
Aluminum futures in the UK rose to $3,440 per tonne, near its highest level in almost four years, after Bahrain's Alba cut production amid heightened regional tensions. The world’s largest single-site aluminum producer shut down three production lines, which together account for about 19% of its total annual capacity of 1.6 million tonnes. Alba’s output cuts add to a growing series of supply disruptions that have intensified concerns about potential shortages. The closure of the Strait of Hormuz has restricted exports from the Persian Gulf region, which accounts for about 9% of global aluminum production. Earlier this month, Alba also suspended deliveries, while Qatar halted part of its production due to natural gas shortages. Adding to supply concerns, output from China, the world’s largest aluminum producer, is expected to stall this year after surpassing the government-imposed cap of 45 million tonnes in 2025, a measure aimed to curb overcapacity.
2026-03-16