Aluminium resumes ascent, eyes best week in 18 months as Mideast war intensifies

Aluminium prices rose again on Friday after snapping a three-day winning streak in the previous session, and were heading for their biggest weekly jump in more than 18 months as supply concerns due to the U.S-Israel war on Iran intensified.

Benchmark three-month aluminium on the London Metal Exchange was up 1.5% at $3,346.50 per metric ton as of 1050 GMT. The metal widely used in packaging and transport hit a near four-year peak of $3,418 on Wednesday as the Mideast crisis threatened to cut off aluminium shipments from the region.

LME aluminium was on course to gain 6.6% this week, which would mark its biggest weekly jump since August 2024. Qatari smelter Qatalum and Aluminium Bahrain have already declared force majeure on shipments.

“Given the Middle East accounts for around 9% of global production and supply is at risk, we have raised our shortfall forecast to 1.5 million tons from 1 million tons” for 2026, Bank of America said in a note.

Israel pounded Lebanese capital Beirut on Friday in a major expansion of the war against Iran.

LME aluminium inventories slipped by 2,250 tons to 456,875 tons, the lowest since July 2025, while Shanghai Futures Exchange aluminium stocks rose 10.8% from a week ago to 394,498 tons, the highest since April 2020.

LME copper meanwhile fell 0.3% to $12,858 per ton, coming under pressure from high inventories. Copper stocks in LME warehouses climbed by another 2,450 tons to 284,325 tons, the most since October 2024, following inflows in Singapore and New Orleans.

Copper, used in power, construction and manufacturing was on course for a weekly dip of 3.6%.

Zinc added 1.3% to $3,268, lead gained 0.2% to $1,945.50, nickel nudged up 0.5% to $17,290 and tin rose 0.2% to $49,900.