Aluminum futures in the UK traded near $3,050 per tonne, their lowest level since February, pressured by a stronger US dollar, easing concerns over supply disruptions in the Gulf, and rising production capacity in Indonesia. Macquarie recently cut its forecast for the global aluminum supply deficit as smelter restarts in the Middle East advanced more quickly than anticipated.
In late August, Emirates Global Aluminium reported that a quarter of its Al Taweelah smelter in Abu Dhabi had resumed operations, as restoration continued following damage from an Iranian attack in March. In a further boost to supply prospects, Rio Tinto secured an agreement to keep its Bell Bay Aluminium smelter in Tasmania running through the end of 2031.
At the same time, the US dollar hovered near an 18‑month high, adding pressure to dollar-denominated commodities. Softer demand expectations in China also weighed on LME aluminum prices.
