Aluminum Prices Extend Advance
2026-03-31 06:52
By
Judith Sib-at
1 min. read
Aluminum futures in the UK extended their gains, climbing toward $3,470 per tonne and poised for a monthly increase of around 10%, the strongest performance in nearly two years.
The rally was driven by concerns over a prolonged supply squeeze following Iranian strikes that damaged two aluminum plants in the Gulf region, operated by Aluminium Bahrain and Emirates Global Aluminium.
Both companies have yet to provide updates on the status of their operations.
The Middle East hostilities have had a pronounced impact on aluminum, given that the region is a major source of primary metal, nearly all of which is exported.
Exports are now constrained due to the closure of the Strait of Hormuz.
Signs of tightness in the physical market are also emerging, with LME warehouse inventories falling to 418,675 tonnes as of March 27, the lowest level since July 2025.
Further supporting prices, China's factory activity returned to growth in March, signaling increased demand for industrial metals.