Aluminium prices have surged, climbing 1.8 per cent to $US3251 per tonne, driven by escalating supply disruptions in the Middle East. The rally comes in response to a controlled shutdown of production at Qatalum, a major aluminium producer jointly owned by Qatar and Norsk Hydro. Qatalum specialises in producing high-quality primary aluminium products. The company announced that a full resumption of operations is expected to take between six and twelve months.
The production halt follows attacks by Iranian drones, which have also forced the closure of Qatar’s liquefied natural gas (LNG) facilities. The disruptions have prompted significant market reactions, with consumers reportedly withdrawing substantial quantities of metal from exchange warehouses.
Analysts at ANZ have noted the impact of these withdrawals, highlighting a sharp increase in orders on the London Metals Exchange (LME). On Tuesday, such orders more than doubled to 86,025 tonnes, reflecting growing concerns over near-term supply availability in the aluminium market. The situation remains fluid as traders assess the full extent of the disruption and its potential long-term impact on global aluminium inventories.
