Aluminium prices recover as market weighs disruptions and weaker demand

Aluminium prices steadied on Friday as investors balanced the competing impacts of the Iran war and lower supply from disrupted operations in the Middle East against weaker demand from a spike in oil prices.

Benchmark three-month aluminium on the London Metal Exchange gained 1.1% to $3,287 a metric ton in official open-outcry trading.

It ‌closed down ⁠4.4% in ⁠the previous session, after sliding as much as 8.4% as speculators scrambled to liquidate positions.


"The tone ​in base metals is cautious after yesterday's session that left aluminium at the centre of attention," ​said Neil Welsh, head of metals at broker Britannia Global Markets.

Aluminium prices had rallied in recent weeks on fears of supply disruptions after the U.S. and Israel attacked ​Iran. The Gulf accounts for 8% of global production.

Aluminium Bahrain ⁠said on ‌Thursday it is exporting metal via the Saudi port of ​Jeddah as the ​Strait of Hormuz remains effectively shut.

High oil prices, however, spur ⁠inflation, erode global economic growth and dampen metals demand.

"That combination has ​traders balancing the risk of regional supply disruption against the ​risk that higher energy prices will slow manufacturing demand," Welsh added.

Metal prices briefly got support on Friday when oil eased during Asian trading on Western efforts to secure safe passage through the Strait of Hormuz, but oil later recovered, eroding that buffer.

LME copper was slightly firmer in Asian trading, but later went into the red, giving ‌up 0.2% to $12,128 a ton in official activity. It was headed for a 5.5% weekly loss, the biggest since April 2025.

The most active ​copper contract on ​the Shanghai Futures Exchange ⁠ended daytime trading 1.1% lower at 94,780 yuan ($13,751.18), down 6.1% for the week.

Copper has been weighed down by rising inventories and data showed on Friday that LME stocks ​in the U.S. gained another 4,725 tons to 98,675, their highest since February 2019.

Among other metals, LME zinc rose 0.8% to $3,096 a ton and lead gained 0.6% to $1,898 while nickel shed 0.4% to $16,925 and tin dipped 0.1% to $43,500.

($1 = 6.8925 Chinese yuan renminbi)