UK aluminum futures fall as Gulf supply worries ease

Aluminum futures in the UK fell to around $3,280 per tonne, retreating further from a seven-week high, after Emirates Global Aluminium reaffirmed its timeline to restore full production at the Al Taweelah smelter by Q1 next year, easing concerns over supply from the Gulf.

The company was forced to cut output after the smelter was hit by Iranian missiles and drones during the early stages of the war.

The restoration is expected to improve supply prospects from the Middle East, which accounted for around 10% of global aluminum production prior to the conflict.

Prices had jumped recently amid lower feedstock production at Norsk Hydro’s plant in Brazil, adding to concerns over Gulf supply as uncertainty persisted over a deal that could reopen the Strait of Hormuz, a key export route for regional smelters.

Further easing supply fears, the owners of Australia’s largest aluminum smelter secured a $1.8 billion government bailout, allowing operations to continue.