FX.co ★ Aluminum Prices Hit Over 4-Year High

Aluminum futures in the UK rose to about $3,550 per tonne in April, their highest level since March 2022, driven by mounting uncertainty across metal markets after President Trump vowed to enforce a blockade of the Strait of Hormuz. In contrast to most metals, which are under pressure from expectations of weaker demand as surging energy costs threaten to slow global growth, aluminum prices have bucked the broader downtrend amid mounting supply disruptions.

The Gulf region is a major producer of primary aluminum, accounting for roughly 9% of global output, but shipments have been severely curtailed since the Strait was closed in late February. Market strains intensified after Iran attacked two regional smelters, prompting Emirates Global Aluminium — the region’s largest producer — to suspend operations at its Al Taweelah facility. These supply shocks were clearly mirrored in the London Metal Exchange, where the aluminum market’s backwardation widened significantly, signaling heightened tightness in near-term supply.