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METALS-Supply worries drive aluminium to highest level in more than four years
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METALS-Supply worries drive aluminium to highest level in more than four years
May 26, 2026 3:23 AM

(Updates prices, adds analyst comment, changes dateline to

London)

By Polina Devitt

LONDON, May 26 (Reuters) - Aluminium prices hit their

highest in more than four years on Tuesday, as rising prices for

the feedstock alumina added to persistent concerns about a

tightening market amid reduced supply from Gulf producers.

Three-month aluminium on the London Metal Exchange

rose 1.4% to $3,698.50 by 0937 GMT after hitting $3,707.5, the

highest since March 24, 2022.

The metal's record high of $4,073.5 was on March 7, 2022,

when markets were grappling with the immediate fallout of

Russia's invasion of Ukraine.

Providing support to aluminium on Tuesday was a 5% rise in

September alumina futures on the Shanghai Futures Exchange

, which advanced to their highest since early May due to

worries about supplies of raw material bauxite from Guinea.

Guinea, the world's top bauxite producer, has been

considering introducing export quotas for mining companies as

shipping costs climb, squeezing the country's revenue. Guinea

expects to finalise the new policy in June, Bloomberg News

reported citing an official.

These worries added to already reduced supply from producers

in the Gulf amid the Iran war, which has kept the premium of the

LME aluminium cash contract against the benchmark at

$71 a ton last week, indicating tightness for immediate supply.

The Middle East conflict has triggered the largest aluminium

supply shock in at least 50 years, analysts at Citi said in a

note last week, accelerating inventory drawdowns of around 3

million tons this year from already historically low levels and

prompting strong futures buying.

In other LME metals, copper fell 0.3% to $13,617.50

a ton. The global refined copper market was in a surplus of

396,000 tons in January-March, according to an industry body.

Zinc rose 1.3% to $3,588.50, lead gained

0.5% to $2,020, tin added 0.7% to $54,570 and nickel

lost 1.1% to $18,695.

Earlier in the session, LME copper, zinc and tin hit their

highest since mid-May, while lead touched the highest since late

January.

(Reporting by Polina Devitt; Editing by Mrigank Dhaniwala)

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