Aluminium prices ended a seven-session rally on Wednesday as Emirates Global Aluminium (EGA) reaffirmed its timeline for restoring full production at its war-damaged facility in Abu Dhabi's first quarter of 2027. Benchmark three-month aluminium on the London Metal Exchange fell 0.65% to $3,342 per metric ton at 0700 GMT on August 12, 2026. The rally, which began on August 3, had generated gains of 4.7% over the seven-session period before the decline.
EGA's Al Taweelah Smelter suffered damage following strikes by Iran in March, forcing an emergency shutdown. In its earnings report for the first half of 2026, the company stated that the facility will reach its pre-incident production levels in the first three quarters of 2027, aligning with an announcement made in July. The Shanghai Futures Exchange's most traded aluminium contract was 0.43% more expensive at 24,285 Yuan (equivalent to $3,600.18 per metric ton).
The contract had reached 24,470 yuan per ton earlier in the session, marking its highest level in nearly 10 weeks. The disruption of aluminium production in the Middle East, which represents 9% of global smelting capacity, was expected to lead to supply concerns. Available stocks of light metals in LME registered warehouses have fallen to their lowest levels in the last century.
Coppper prices also gained support during the session as the temporary closure of the Smelting Gresik plant in Indonesia added pressure to the global supply of red metal. Copper rose 0.26% on the LME and 0.4% on the SHFE, supported by falling inventories and broader supply concerns. LME stocks have been affected by outflows to the United States ahead of potential tariffs on imports, reaching their lowest level since January.
Other base metals showed mixed performance. Nickel ticked up 0.09% and tin rose 0.64% on the LME. On the Shanghai Futures Exchange, zinc rose 0.86%, lead gained 0.28%, nickel fell 0.23%, and tin increased 1.4%.
Source: Reuters via Energy News
Source: energynews.oedigital.com