22.12.202508:41:44UTC+00Aluminum Rises to 3½-Year Highs

Aluminum futures in the UK surged towards $2,970 per tonne, reaching their highest level since early May 2022. This rise follows South32's announcement that its Mozal smelter in Mozambique will be placed under care and maintenance by March 2026 due to the inability to secure a new power agreement. The anticipated shutdown is likely to tighten global aluminum supplies in the coming year, intensifying concerns over an already constrained market. Supply pressures are further exacerbated by disruptions at Iceland’s Grundartangi smelter, where one potline has been suspended due to equipment failure. Additionally, declining inventories at major Japanese ports, which dropped 5.2% month-on-month to 312,100 metric tons by the end of November, have bolstered prices. Global producers are also pushing for substantially higher premiums for January-March shipments. Furthermore, China—the world's largest producer—is expected to near its 45-million-ton annual output cap. So far this year, aluminum prices have increased by nearly 17%.