02.06.202607:30:27UTC+00Aluminum Hits Fresh 4-Year Highs

Aluminum futures in the UK have risen above $3,780 per tonne, their highest level in more than four years, as the market continues to struggle with significant supply disruptions. Ongoing uncertainty surrounding a potential US–Iran peace agreement, which could lead to the reopening of the Strait of Hormuz, has heightened concerns that aluminum exports from the Persian Gulf may remain constrained for an extended period. Supply risks have been further intensified by direct attacks on key refiners in the region. EGA’s flagship smelter is expected to require up to a year to restore full capacity, while operations at Bahrain’s ALBA facility remain only partially online. At the same time, tighter controls on bauxite exports from Guinea have deepened worries about raw material availability. Market stress is also evident in the sharp widening of the premium of cash aluminum over three-month contracts, which has surged to a 19-year high. Separately, President Donald Trump reduced tariffs on selected steel and aluminum derivative products to 15%, down from 25%.