FX.co ★ Aluminum Remains Near Multi-Month Lows

Aluminum futures in the UK traded just above $3,000 per ton, holding near multi-month lows as supply conditions improved outside the Middle East. Increased production in China continues to offset reduced output from the Gulf, with Chinese smelters operating close to record levels. China’s aluminum exports rose 25.9% year-on-year in September, reaching their highest monthly volume in three months, while Indonesia’s exports topped 150,000 tonnes in August.

Although production across the Gulf Cooperation Council remains subdued, some smelters have started a gradual recovery. Emirates Global Aluminium reported in late August that a quarter of the reduction cells at its Al Taweelah plant had been restarted, with full production expected to be restored by the first quarter of 2027. Further supporting the supply outlook, Rio Tinto has agreed to extend operations at its Bell Bay aluminium smelter in Tasmania through 2031.