- Aluminium rallies on Iran-led supply disruptions
- Prices to stay firm as long as supply disruptions last
Aluminium prices surged sharply on 30 March 2026, rising by around 6% to touch $3,492/t on the London Metal Exchange, following Iranian strikes on key production facilities in the Middle East. The attacks impacted major producers such as Emirates Global Aluminium in the UAE and Aluminium Bahrain, both of which reported damage to their operations, raising concerns over potential supply disruptions.
The Middle East, which contributes nearly 9% of global aluminium output, plays a critical role in the global supply chain. Ongoing geopolitical tensions had already strained logistics, with smelters facing difficulties in exporting metal and importing raw materials due to disruptions around the Strait of Hormuz. The latest escalation has further intensified fears of prolonged supply shortages, with expectations of possible production cuts and delayed recovery.
As a result, aluminium prices approached multi-year highs, supported by bullish sentiment and increased risk premiums. Parallelly, gains were also observed across other base metals, while aluminium contracts on the Shanghai Futures Exchange recorded a similar upward momentum.
The situation indicates the likelihood of sustained volatility, as any continued disruption in the region may tighten global supply further. Even if geopolitical tensions ease, the extent of damage to production facilities could keep supply constrained in the near term, supporting elevated price levels.
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