Aluminum futures in the UK fell further to $3,350 per tonne, the lowest level since March 27, as supply risks eased and demand worries persisted. The US and Iran have reached a framework agreement to end their three-month conflict, with the Strait of Hormuz expected to reopen once the deal is formally signed on June 19. The reopening of this key waterway would restore metal exports from the Persian Gulf, which accounts for around 9% of global aluminum output.
Still, uncertainty lingers over the speed at which supply chains can normalize, especially since major Gulf producers experienced operational disruptions following earlier Iranian attacks. Additional downward pressure on prices stems from rising production in China, the world’s largest aluminum producer, alongside growing supply from smelters in Indonesia. At the same time, weak economic data from China has renewed concerns about global demand, given that the country is also one of the world’s largest aluminum importers.
