2026.08.1307:08:28UTC+00Aluminum Extends Decline

Aluminum futures in the UK slipped to around $3,270 per tonne, pulling back further from a seven-week high, after Emirates Global Aluminium reaffirmed that it remains on track to restore full production at the Al Taweelah smelter by the first quarter of next year. The update eased worries about supply from the Gulf. Output at the smelter had previously been cut after it was struck by Iranian missiles and drones in the early stages of the war. The planned restoration is expected to strengthen supply prospects from the Middle East, which accounted for roughly 10% of global aluminum production before the conflict.

Prices had recently surged amid reduced feedstock output at Norsk Hydro’s plant in Brazil, intensifying concerns over supply from the Gulf as uncertainty persisted around a potential agreement to reopen the Strait of Hormuz, a critical export corridor for regional smelters. Further easing supply concerns, the owners of Australia’s largest aluminum smelter secured a $1.8 billion government bailout, enabling operations to continue.