Aluminium extends gains as supply concerns amid Mideast conflict linger

BEIJING: Aluminium prices extended gains on Thursday, finding continued support from lingering concerns about tightening global supply amid the Middle East conflict, which showed no signs of easing.

The most-traded aluminium contract on the Shanghai Futures Exchange rose 1.25% to 25,460 yuan ($3,703.60) per metric ton as of 0212 GMT.

Benchmark three-month aluminium on the London Metal Exchange advanced 1.48% to $3,504 a ton, closer to a nearly four-year high of $3,544 touched earlier this week.

The war in the Middle East, for around 9% of global aluminium supply, has effectively shipments through the Strait of Hormuz, sparking supply fears and sending prices higher.

The United States and Iran have signalled no quick end to their war, with US President Donald Trump saying it was necessary to finish the job and Iran warning that the world should be ready for oil at $200 a barrel after striking tankers in Iraqi waters and other ships near the vital Strait of Hormuz.

The situation remains unstable, leaving aluminium highly sensitive to geopolitical headlines and keeping volatility elevated, ING analysts said in a note.

Commodity trader Mercuria cancelled or earmarked for delivery nearly 100,000 tons of aluminium in LME-approved warehouses in Port Klang, Malaysia on Monday.

Analysts at consultancy Benchmark Mineral Intelligence (BMI) raised their forecast for the 2026 aluminium price to $3,100 a ton, up from $2,900 previously, as developments materially heighten the likelihood of a more acute supply squeeze.

For other SHFE metals, copper dipped 0.41%, nickel advanced 0.68%, lead was flat, tin slid 1.04%, and zinc edged up 0.06%.

Among other LME metals, copper nudged down 0.06%, nickel shed 0.36%, lead added 0.21%, tin gained 0.39%, and zinc climbed 0.6%.