Aluminum futures in the UK hovered around $3,230 per tonne, moving within a narrow range after retreating from an eight-week high of $3,360 reached on August 11th, amid a brief easing of supply tightness. Chinese aluminum exports, from the world's largest producer, jumped 18.7% year-on-year in July. With domestic demand subdued, Chinese smelters increased overseas shipments despite Beijing’s 45-million-ton production cap, partially offsetting supply disruptions from the Middle East linked to the conflict in Iran.
At the same time, the Alunorte plant in Brazil—the largest alumina refinery outside China—was forced to cut output to half capacity due to a shortage of natural gas from its supplier. This further strained its customer Norsk Hydro, which had already issued two force majeure notices on aluminum sales after Qatalum, its joint venture in Qatar, halted production amid natural gas shortages. Liquefied natural gas (LNG) supplies from the Middle East, a critical input for aluminum refining, have been constrained by tanker blockades involving the US and Iran.
