Aluminium prices steadied on Friday after a turbulent week dominated by supply concerns from the Middle East and weaker demand linked to soaring oil prices. Benchmark three-month aluminium on the London Metal Exchange (LME) rose 0.5 per cent to $3,269 a metric tonne, recovering from a 4.4 per cent slide in the previous session, which saw intraday losses reach as much as 8.4 per cent as speculators rushed to unwind positions.
“The tone in base metals is cautious after yesterday’s session that left aluminium at the centre of attention,” said Neil Welsh, head of metals at Britannia Global Markets. He noted that aluminium had rallied in recent weeks on fears of supply disruptions following U.S. and Israeli attacks on Iran, a region responsible for 8 per cent of global aluminium output.
Aluminium Bahrain confirmed on Thursday that it was exporting metal via Saudi Arabia’s port of Jeddah, as the Strait of Hormuz remains effectively closed, maintaining pressure on global supplies. While the disruption supports prices, analysts warn that rising energy costs could undermine demand.
“High oil prices spur inflation, erode global growth, and dampen metals demand. Traders are now balancing the risk of regional supply disruption against the risk that higher energy prices will slow manufacturing activity,” Welsh said.
The market saw temporary support on Friday as oil prices eased during Asian trading, driven by Western efforts to secure safe passage through the Strait of Hormuz. However, gains proved short-lived as crude prices recovered later in the session, eroding the relief for metals investors.
Copper markets also reflected demand concerns. LME copper ended slightly lower, down 0.3 per cent at $12,115 a tonne, towards a 5.5 per cent weekly loss, the largest since April 2025. On the Shanghai Futures Exchange, the most active copper contract closed 1.1 per cent lower at 94,780 yuan ($13,751.18), down 6.1 per cent for the week.
Other base metals exhibited mixed performance. LME zinc rose 0.3 per cent to $3,080 a tonne, and lead gained 0.6 per cent to $1,899.50. Nickel retreated 0.6 per cent to $16,890, while tin fell 2.4 per cent to $42,490.
Market participants continue to monitor geopolitical tensions closely, with analysts warning that prolonged disruptions in Gulf supply routes could extend volatility across metals markets. At the same time, rising energy costs threaten to slow industrial demand, highlighting the precarious balance for commodities in an uncertain global economic environment.
