Aluminum futures in the UK climbed to $3,380 per tonne in August, the highest level in nearly two months, driven by tightening supply from key producers. Operations at Brazil’s Alunorte facility—the world’s largest alumina refinery outside China—have been cut to half capacity due to a shortage of natural gas from its supplier.
The disruption has further weighed on Norsk Hydro, Alunorte’s main customer. The company had already declared two force majeures on aluminum sales after its Qatari joint venture, the Qatalum plant, was forced to halt production amid natural gas shortages. Those shortages followed Iranian attacks that damaged energy and metals infrastructure across the Middle East.
Supply from Persian Gulf countries has been constrained since the onset of the US–Iran conflict in March, due to both direct damage to production facilities and blockades affecting export trade routes. Before the war, the region accounted for roughly 10% of global aluminum output. Even so, aluminum futures remain below this year’s four-year highs, as softening demand from China tempers upward price pressure.
