Aluminum Extends Gains

Aluminum futures in the UK rose to $3,550 per tonne in early Asian trading, extending their rebound from a one-month low as sentiment improved after a US–Iran agreement. The deal, expected to be formally signed on June 19, has ease concerns about global economic growth and supported expectations for stronger metals demand. The metal had recently come under pressure amid persistent tensions between the two nations, which fueled inflation concerns and raised the prospect of tighter policy. While a potential reopening of the Strait of Hormuz would eventually restore aluminum export flows from the Persian Gulf, supply concerns persist, as key Gulf producers faced operational challenges following Iranian attacks during the first month of the war. EGA’s flagship smelter is expected to take up to a year to return to full capacity, while Bahrain’s ALBA is still operating below normal levels. Tighter restrictions on bauxite exports from Guinea have added to concerns about raw material supply.