Aluminium prices on the London Metal Exchange (LME) continued to climb amid rising geopolitical uncertainty linked to the US-Israel conflict with Iran and the disruption of shipping activity through the Strait of Hormuz, a key global trade corridor. The conflict has raised concerns over potential supply bottlenecks from the Middle East, an important aluminium-producing region.
The LME aluminium cash bid price rose to USD 3,384.5 per tonne on March 6 from USD 3,298 per tonne on March 5, marking an increase of 2.62 per cent. The cash offer price also increased to USD 3,385 per tonne from USD 3,298.5 per tonne, reflecting a 2.62 per cent rise day-on-day.
Market sentiment has been supported by fears that prolonged tensions in the Gulf could disrupt metal flows and tighten global availability. The Middle East accounts for more than 8 per cent of global primary aluminium output, with the Strait of Hormuz alone estimated to handle around 5.14 million tonnes of aluminium shipments each year.
The LME aluminium three-month contract also recorded an increase. The 3-month bid price rose to USD 3,360 per tonne on March 6 from USD 3,300 per tonne on March 5, marking a 1.82 per cent increase. Similarly, the offer price climbed to USD 3,362 per tonne from USD 3,302 per tonne, also reflecting a 1.82 per cent rise.