(Adds analyst comment, updates prices)

March 13 (Reuters) - Aluminium fell on Friday, snapping

a three-day run of gains, as the dollar strengthened on fading

prospects for more U.S. rate cuts, although shipping disruption

in the war-hit Middle East kept the metal on course for a weekly

rise.

Benchmark three-month aluminium on the London Metal Exchange

was down 1.7% at $3,458 per metric ton as of 1030 GMT.

It was still set to end the week up 0.3% after hitting a nearly

four-year high on Thursday, having notched a 10% leap last week.

"The biggest moving part there is the dollar," said Panmure

Liberum analyst Tom Price. The greenback rose to a more

than three-month high on Friday as the turmoil in markets left

it the last safe-haven standing.

A stronger dollar makes dollar-denominated metals more

expensive for holders of other currencies.

"But the brand new fundamental driver ... hasn't changed,"

Price added, noting how Gulf aluminium producers were grappling

with spiking energy prices and struggling to get hold of raw

materials.

"Even if they did, they can't ship it out. It's a nightmare.

So basically about 2 to 3 million tons of capacity is at risk.

There's no short-term solution to that," Price said. The world

produced 73.8 million tons of primary aluminium last year.

LME aluminium stocks slipped to 445,300 tons,

the lowest since July. The spread between the cash LME aluminium

contract and the three-month forward was last in a $29

a ton backwardation, pointing to a shortage of available metal.

In China, however, Shanghai aluminium stocks rose

5.6% from last week to 416,425 tons, the most since April 2020,

while Norsk Hydro ( NHYKF ) said on Thursday its Qatalum

aluminium smelter would keep operating at 60% after announcing a

shutdown last week.

The dollar dragged the LME complex down, with copper

sliding 1% to $12,871 a ton and heading for a 3.6% weekly dip.

Zinc lost 0.4% to $3,286.50, nickel fell

1.6% to $17,445, tin dropped 3.1% to $47,860 and lead

was down 0.6% at $1,929, hitting its lowest since May

2025.