LME aluminium reaches 3.5-year peak driven by low stocks and supply risks

LME aluminium prices surged to a 3.5-year high of $2,790/t, last seen in June 2022, driven by tightening supply and falling inventories. On-warrant stocks dropped 15% in a month to 398,775 t, highlighting strong demand. Adding pressure, Guinea revoked all mining licences from Guinea Alumina, raising concerns over bauxite supply disruptions to major producers like Emirates Global Aluminium, further fuelling market uncertainty.