Aluminum Prices Hit Over 4-Year High

Aluminum futures in the UK climbed to around $3,560 per tonne in April, the highest level since March 2022, amid uncertainty across metal markets following President Trump’s pledge to enforce a blockade of the Strait of Hormuz. While metals generally face downside risks from expectations of weakening demand, as surging energy prices threaten to slow global economic growth, aluminum has diverged from this trend due to supply disruptions. The Gulf region is a key supplier of primary aluminum, accounting for roughly 9% of global output, but shipments have been severely disrupted by the Strait’s closure in late February. The situation worsened after Iran targeted two regional smelters, with Emirates Global Aluminium, the region’s largest producer, halting operations at its Al Taweelah plant. Stress in the market was clearly reflected in the widening backwardation on the London Metal Exchange.

Aluminum increased to 3544.00 USD/T, the highest since March 2022. Over the past 4 weeks, Aluminum gained 1.89%, and in the last 12 months, it increased 46.19%.

Aluminum futures in the UK rose to around $3,460 per tonne, hovering near a four-year high, as the market continues to grapple with ongoing supply disruptions despite hopes for an end to the Middle East conflict. President Donald Trump agreed to a two-week ceasefire with Iran that includes the reopening of the Strait of Hormuz. However, renewed Israeli strikes in Lebanon threaten to undermine the truce, amid disagreements between Iran and the US-Israeli side over whether the ceasefire covers Lebanon. The Gulf region is a key supplier of primary aluminum, accounting for roughly 9% of global output. However, shipments have been severely disrupted by the Strait’s closure in late February. Supply concerns were further exacerbated last month when Iran targeted two regional smelters, forcing Emirates Global Aluminium, the region’s largest producer, to suspend operations at its Al Taweelah facility.