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Global aluminium prices are expected to remain above USD 4,000 per metric tonne between the third quarter of 2026 and the second quarter of 2027, according to the Commodities Research Unit (CRU).
{alcircleadd}Paul Williams, head of aluminium value chain at CRU, said at the World Aluminium Summit in London that the expected price rise is linked to a growing supply deficit caused mainly by the conflict involving Iran.
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Aluminium prices on the London Metal Exchange have already increased by 18 per cent this year. Benchmark aluminium prices were last reported at USD 3,559 per tonne after reaching a four-year high of USD 3,672 per tonne in mid-April.
The Middle East conflict has disrupted aluminium exports from Gulf producers and affected imports of raw materials needed by smelters in the region. Two smelters in the Gulf were hit by Iranian strikes in late March.
The Middle East normally accounts for around 9 per cent of global aluminium supply. Aluminium is widely used in transport, construction and packaging industries.
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CRU expects the global aluminium market to face a deficit of around 1.4 million tonnes in 2026. The consultancy also estimates that aluminium production in the Gulf region could fall by around 25 per cent year-on-year.
Williams said, “We've seen deficits like this in the market before ... but this time it is going to be far more difficult," because of the scale of supply disruption and geopolitical uncertainty.
According to CRU forecasts, aluminium prices could reach around USD 4,020 per tonne in the third quarter of 2026 and rise further to about USD 4,105 per tonne in the second quarter of 2027.
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The current all-time high for aluminium on the London Metal Exchange was recorded on March 7, 2022, when prices reached USD 4,073.50 per tonne after the start of the Russia-Ukraine crisis.
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