FX.co ★ Aluminum Prices Retreat from 4-Year Highs

Aluminum futures in the UK slipped below $3,600 per tonne, retreating from their highest level in more than four years, as expectations of higher exports from China, the world’s largest aluminum producer, eased worries about ongoing supply disruptions in the Persian Gulf. Chinese producers have indicated they are prepared to provide alternative supplies to overseas buyers, offsetting the impact of the conflict in the Middle East, which has constrained shipments from a region responsible for around 9% of global output. Exports from the Gulf have been hit hard since the Strait of Hormuz was closed in late February. The situation deteriorated further after Iranian strikes damaged two major regional smelters, prompting Emirates Global Aluminium, the area’s largest producer, to suspend operations at its Al Taweelah facility.