FX.co ★ Aluminum Hits Near 4-Year High

Aluminum futures in the United Kingdom surged above $3,280 per tonne, marking the highest point since April 2022, as a result of tightening global supply conditions. In China, the leading producer of aluminum, output reached a record 45.02 million tonnes in 2025, slightly surpassing the government-imposed ceiling of 45 million tonnes intended to address structural oversupply issues. With China approaching its maximum production capacity, market participants are increasingly concerned about the speed at which producers in other regions can escalate their output to satisfy escalating demand, particularly driven by the energy transition. Supply constraints have been further exacerbated by production disruptions at key smelters located in Iceland, Mozambique, and Australia, thus restricting short-term market availability. Additionally, the commodity received a boost from a depreciating US dollar, which lowers the cost of dollar-denominated commodities for purchasers using other currencies.