Metals: Supply concerns, lower stocks drive aluminium to seven-week high

Norsk Hydro ASA

11/08/2026 10:10

Updates prices
By Polina Devitt
LONDON, Aug 11 (Reuters) - Aluminium prices climbed to a seven-week high on Tuesday as concerns over supply from the Gulf coincided with Norsk Hydro's announcement of reduced feedstock production at its Brazilian plant.
Benchmark three-month aluminium CMAL3 on the London Metal Exchange was up 1.4% at $3,363 a metric ton by 1601 GMT, after hitting $3,384.5, its highest since June 22.
Aluminium extended its gains to a seventh consecutive session after Norsk Hydro NHY.OL said its Alunorte plant in Brazil had cut alumina output to 50% of capacity due to reduced supply of natural gas. The plant has annual production capacity of 6.3 million tons of alumina.
Aluminium is up 6% so far in August, having broken above its 200-day moving average last week, which now provides support at $3,219. The next resistance level is the 100-day moving average at $3,396.
"Aluminium had a lot of resistance at $3,200. Once it got through there, it was only a matter of time until it started to trend higher," said a metals trader. "Any bullish headline just acts as a catalyst and adds fuel to the fire."
Providing further support are worries about supply from Gulf producers and rising oil prices with traders focused on negotiations between the United States and Iran over a peace deal and the reopening of the Strait of Hormuz. MKTS/GLOB
The U.S.-Iran war has disrupted aluminium shipments from producers in the Middle East, which account for 9% of global capacity.
Meanwhile, available aluminium stocks in LME-registered warehouses are at 244,550 tons, the lowest since April 2025, dominated by Russian-made metal, which many traders avoid.
In other LME metals, copper CMCU3 was steady at $14,162 a ton, on course to close at all-time high as outflows to the U.S. ahead of potential U.S. import tariffs reduced availability.
The cash-to-three-month spread on the LME CMCU0-3 remains in sharp backwardation at $185 a ton, its deepest since October, signalling tightness for nearby supply.
LME zinc CMZN3 was unchanged at $3,735.50, while lead CMPB3 rose 0.2% to $1,907.50, tin CMSN3 gained 0.4% to $55,945 and nickel CMNI3 fell 0.5% to $16,835.

 (Reporting by Polina Devitt; editing by Mark Potter and Chizu Nomiyama)
 ((polina.devitt@thomsonreuters.com))