Aluminum futures in the UK climbed to $3,690 per tonne, the highest level in more than four years, amid prolonged supply disruptions in the Middle East. Recent US strikes on Iranian targets undermined hopes that a potential agreement between the two countries would reopen vessel traffic through the Strait of Hormuz. The ongoing naval blockade has halted shipments that previously accounted for about 9% of global aluminum supply.
At the same time, direct attacks on the region’s largest refiners have further delayed any meaningful recovery in output. EGA’s flagship facility is now expected to take about a year to return to full capacity, while operations at Bahrain’s ALBA have been suspended. The resulting spike in natural gas prices has also pushed refining costs higher.
Adding to the tightness, Guinea announced that it will impose controls on bauxite exports starting in June. The growing mismatch between supply and demand has driven the LME aluminum curve into backwardation, with cash contracts trading at a $60 premium to three‑month futures.
