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- October 18, 20268°
- BIST10011,722-2.89%
- USD49.45+0.05%
- EUR55.62+0.37%
- GOLD4,181.10+0.26%
- INTEREST37.00%-1.00
- BITCOIN81,345-0.19%
- October 18, 20268°
Aluminum prices hit six-week high on supply concerns
Aluminum futures on the London Metal Exchange rose to $3,216.40 per tonne, their highest level in about six weeks. Low inventories and a decline in global production are supporting prices.
Aluminum prices climbed to a six-week high amid concerns over tightening global supply. Aluminum futures on the London Metal Exchange (LME) rose to $3,216.40 per tonne.
Low inventory levels and persistent supply concerns played a decisive role in the market's rise. In July, global aluminum production excluding China fell 6.7 percent compared to the same period last year. A slowdown in production at some aluminum smelters in the Middle East and China's maintenance of its 45-million-tonne production cap heightened supply worries.
LME Inventories at Historic Lows
Driven by geopolitical developments, consumers reduced their existing inventories rather than turning to exchange stocks, pushing LME inventories to their lowest levels in a century. Alcoa's downward revision of its production forecast due to disruptions at its refinery operations in Australia also tightened the supply outlook.
New Investments on the Horizon
Meanwhile, new investments expected to ease supply pressure are being closely watched. The Slovalco smelter in Slovakia is scheduled to restart production in the fourth quarter of 2026. A new plant in the US state of Missouri is also expected to come online by the end of the year. Emirates Global Aluminium continues capacity expansion work at its Al Taweelah facility. Experts assess that while the current supply squeeze persists, the planned new capacities could support market balance in the coming period.
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