Aluminum futures hold at $3,330/ton, four-week high
UK aluminum futures were at $3,330 per tonne, highest level in four weeks, supported by supply tightness and shrinking inventories amid Middle East flow disruptions and low LME/SHFE stocks.
Aluminum futures in the UK were at $3,330 per tonne, the highest level in four weeks, as supply tightness and shrinking inventories continued to support the market. The ongoing US-Iran conflict has curbed aluminum flows from the Middle East, with GCC output down 44% year-on-year in July. LME inventories were near a 36-year low, while SHFE inventories fell 3% from the previous week, highlighting tight physical-market conditions.
The Alunorte plant in Brazil, the world's largest alumina refinery outside China, temporarily reduced production to 50% of capacity in August before output was restored to full capacity after a temporary terminal access agreement with its gas supplier. Some of the supply pressure could be eased by planned capacity restarts and expansion projects at several producers, while rising exports from China, the world's largest producer, are adding supply.