

The consulting firm, AZ China Ltd, has reported that the Middle East accounts for 9 per cent of global aluminium production. The major producers use the Strait of Hormuz, off the coast of Iran, as an import corridor for raw materials and export metals. Owing to the recent geopolitical tensions in Iran, metal trade has been sensitive, with aluminium price shooting up 1.6 per cent to USD 3,190 per tonne. Hence, a surging trend is expected to follow in the month of March.
{alcircleadd}As of the close of February, aluminium prices on the London Metal Exchange (LME) moved higher on February 27 compared to the previous session, with both cash and futures contracts registering gains, while exchange inventories recorded a decline.
The LME aluminium cash bid price rose to USD 3,156.5 per tonne on February 27 from USD 3,120.5 per tonne on February 26, marking an increase of 1.15 per cent. The cash offer price edged up to USD 3,157.5 per tonne from USD 3,121 per tonne, also up 1.17 per cent.
The three-month contract followed a similar trend. The LME aluminium 3-month bid price increased to USD 3,163 per tonne on February 27 from USD 3,146 per tonne on February 26, recording a gain of 0.54 per cent. The 3-month offer price climbed to USD 3,165 per tonne from USD 3,147 per tonne, increasing by 0.57 per cent.
To know more about the global primary aluminium industry 2026 outlook, book the report “Global ALuminium Industry Outlook 2026”.
For the longer-dated contract, the December 27 bid price rose to USD 3,107 per tonne on February 27 compared to USD 3,083 per tonne on February 26, reflecting a 0.78 per cent increase. The December 27 offer price advanced to USD 3,112 per tonne from USD 3,088 per tonne, up 0.78 per cent.
The LME aluminium 3-month Asian Reference Price stood at USD 3,140 per tonne on February 27.
On the inventory front, LME aluminium opening stock declined to 467,550 tonnes on February 27 from 469,550 tonnes on February 26, marking a 0.43 per cent decline. Live warrants stood at 420,850 tonnes on February 27, down from 422,225 tonnes on February 26 by 0.33 per cent. Cancelled warrants fell to 44,700 tonnes from 45,325 tonnes, a decrease of 1.38 per cent.
Meanwhile, the LME alumina Platts price settled at USD 307.03 per tonne.
Note: The image is generated by AI for referential purposes
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