Aluminum futures in the UK climbed to around $3,550 per tonne in early Asian trading, extending their rebound from a one-month low as sentiment improved following a US–Iran agreement. The deal, expected to be formally signed on June 19, has eased concerns over global economic growth and bolstered expectations for stronger metals demand. Previously, aluminum prices had come under pressure amid persistent US–Iran tensions, which intensified inflation fears and raised the likelihood of higher interest rates.
Although a potential reopening of the Strait of Hormuz could eventually restore aluminum export flows from the Persian Gulf, direct attacks on major Gulf smelters have delayed a full recovery in regional supply. EGA’s flagship smelter may take up to a year to return to full capacity, while Bahrain’s ALBA is still operating below normal levels. At the same time, tighter restrictions on bauxite exports from Guinea have further stoked concerns about the availability of raw materials.
