Aluminum prices rocketed to US$3,697 per ton yesterday (May 26), reaching the highest point on the London Metal Exchange (LME) since March 2022.
Ongoing instability in the Middle East initially forced Chinese smelters to overproduce to cover global shortages caused by the February shutdown of the Strait of Hormuz. Despite China's daily aluminum output hitting a record 129,000 tons last month, a sharp policy change triggered intense supply anxieties.
Traders fear imminent capacity cuts as Beijing initiates nationwide inspections on energy consumption and carbon emissions. Local interventions have already started. For instance, a smelter in Baise has decreased liquid aluminum output to curb overproduction.
Besides aluminum, copper prices also fluctuated near US$13,630 a ton while investors monitored peace talks for the Middle East conflicts.
Middle East conflict and Chinese production fears push aluminum to four-year high
27 May 2026 15:06 reported by Joy Liu
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