LME Aluminum Prices Jump on Lower Smelter Output, Supply Fears

The state-owned smelter said it is closely monitoring the situation while coordinating with suppliers and customers to manage deliveries and minimize disruption.

SEATTLE (Scrap Monster): Global aluminum prices moved higher on Monday after production cuts at one of the world’s largest smelters intensified fears of supply shortages amid ongoing tensions in the Middle East.

According to Bloomberg, aluminum prices on the London Metal Exchange climbed as much as 1.6% to $3,494.50 per ton, the highest level since 2022, before easing slightly to $3,474.50 per ton during morning trading in Shanghai.

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The rally followed an announcement from Aluminium Bahrain BSC (Alba), which confirmed a phased shutdown of three production lines, representing about 19% of its total output capacity of 1.6 million tons. The state-owned smelter said it is closely monitoring the situation while coordinating with suppliers and customers to manage deliveries and minimize disruption.

Market analysts noted that escalating geopolitical tensions are beginning to translate into tangible supply-chain disruptions. Peng Dinggui, an analyst at Zhongtai Futures Co., said investor sentiment toward aluminum remains strongly bullish as supply risks grow.

The Middle East accounts for roughly 9% of global aluminum production, and Alba’s curtailments add to existing supply reductions, raising concerns about tightening availability for manufacturers worldwide.