LME aluminium cash offer price jumps 2.76% to $3,223.5/t as global supply squeeze tightens market

LME aluminium prices strengthened across cash, three-month and December 27 contracts on November 11, 2026, as declining exchange inventories and constraints on immediate metal availability continued to support the market. The cash offer price rose 2.76 per cent to USD 3,223.5 per tonne, compared with USD 3,137 per tonne on November 10.

The cash bid price also increased by 2.81 per cent, reaching USD 3,223 per tonne from USD 3,135 per tonne in the previous session. The LME aluminium three-month bid price advanced 1.22 per cent to USD 3,062 per tonne from USD 3,025 per tonne, while the corresponding offer price climbed 1.22 per cent to USD 3,064 per tonne from USD 3,027 per tonne.

Similarly, the December 27 bid price rose 0.96 per cent to USD 2,930 per tonne, compared with USD 2,902 per tonne on November 10. The offer price increased by 0.96 per cent to USD 2,935 per tonne from USD 2,907 per tonne. The LME aluminium three-month Asian Reference Price stood at USD 3,068.5 per tonne on November 11.

The upward movement comes amid a major supply squeeze in the global aluminium market. Declining stockpiles have tightened spot metal availability, leaving buyers facing higher prices and little immediate prospect of relief. The pressure is also evident on the Shanghai market, with both London and Shanghai displaying backwardation – a pricing structure in which metal for immediate delivery commands a premium over later-dated futures.

Explore- Most comprehensive and forward-looking industry-focused report — Global Bauxite & Alumina Market Forecast to 2036: Supply–Demand, Trade Flows & Price Outlook

Falling inventories reinforce supply concerns

The tightening market is closely linked to the sharp decline in exchange inventories. LME aluminium stockpiles have reportedly fallen 56 per cent so far in 2026, reaching their lowest level since 1990. The reduction has intensified concerns over the availability of metal for immediate delivery.

LME opening aluminium stocks stood at 226,850 tonnes on November 11, down 125 tonnes, or 0.06 per cent, from 226,975 tonnes recorded on November 10.

Live warrants declined by 1,125 tonnes, or 0.54 per cent, to 206,400 tonnes from 207,525 tonnes. In contrast, cancelled warrants increased by 1,000 tonnes, or 5.17 per cent, to 20,325 tonnes from 19,325 tonnes over the same period.

Meanwhile, the LME alumina Platts price stood at USD 398.23 per tonne on November 11.

Indonesian production remains a longer-term factor

The supply squeeze has increased pressure on aluminium traders and manufacturers as spot procurement costs continue to rise. At the same time, market participants are anticipating higher aluminium production from Indonesia, which is expected to contribute to a global supply surplus in the coming years.

However, the expected increase in Indonesian output has yet to offset the current tightness in the market. Declining exchange inventories and limited availability of metal for immediate delivery continue to support spot prices.

The contrasting trends of falling stockpiles in the near term and rising production expectations over the longer term reflect the changing dynamics of the global aluminium market, with backwardation highlighting the ongoing constraints on immediate supply.

Explore primary aluminium suppliers, product listings and trade opportunities on the AL Biz platform.