FX.co ★ Aluminum Prices Near 4-Year Highs

Aluminum futures in the UK climbed to $3,440 per tonne, nearing their highest level in almost four years, after Bahrain’s Alba curtailed production amid escalating regional tensions. The world’s largest single-site aluminum smelter shut down three production lines, representing about 19% of its total annual capacity of 1.6 million tonnes. Alba’s output cuts add to a growing series of supply disruptions that have heightened fears of potential shortages. The closure of the Strait of Hormuz has constrained exports from the Persian Gulf, which accounts for roughly 9% of global aluminum supply. Earlier this month, Alba also suspended deliveries, while Qatar partially halted production due to natural gas shortages. Further fueling supply concerns, output from China—the world’s largest aluminum producer—is expected to stagnate this year after exceeding the government-imposed cap of 45 million tonnes in 2025, a policy designed to curb overcapacity.