Strait of Hormuz Blockade Continues, LME Aluminum Price Hits New High

K-LinePoet · 2026-03-12T09:58:36+00:00

Affected by the blockade of the Strait of Hormuz, aluminum supplies were limited, and LME aluminum prices briefly broke through $3,500 before retreating. Aluminum inventories increased to 1.28 million tons. Geopolitical conflicts have pushed aluminum prices higher, but the contradiction between increasing inventories and limited demand has constrained the upward momentum in aluminum prices. Aluminum alloys have also risen accordingly.

K-LinePoet

2026-03-12 09:58:36

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Aluminum is the only non-ferrous metal affected by supply shocks. As the Strait of Hormuz blockade continues, the supply of bulk commodities in the region—including crude oil, chemicals, and aluminum—faces increasing pressure. This morning, after the market opened, LME aluminum prices surged quickly, briefly surpassing $3,500, up over 3%. However, it faced some resistance afterward. Shanghai aluminum rose by over 5% at one point but then pulled back after encountering resistance above. In the afternoon, aluminum prices fell rapidly, with gains narrowing. Not only is supply limited, but it is also reported that the Middle East’s planned projects for solar and energy storage are restricted, which could suppress demand. As of March 9, domestic aluminum inventories had reached 1.28 million tons. Due to geopolitical conflicts, aluminum prices continued to surge, but aluminum inventories also increased significantly. The contradiction between aluminum price expectations and reality is becoming more acute, potentially restraining further price increases. Driven by the sharp rise in aluminum prices, aluminum alloys also surged, with gains exceeding 5% at one point. (Chuangchuang Research)

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