Aluminum Prices Hit Four-Year High, Spot Premium Reaches Highest Since 2007
Claire Weston
LME aluminium touched $3,775 per tonne on Monday — the highest since 2022, up 25% year-to-date — while the spot premium surged to $111.75/t, the widest since 2007, driven by Middle East supply disruptions.
How far has aluminium climbed?
Aluminium rose for a fourth straight session, hitting $3,775 per tonne — the highest level since 2022.
Year-to-date gains now stand at 25%, leading all major industrial metals.
This means → aluminium has shifted from a cheap base metal to one of the most crowded commodity trades of the year.
What does a record spot premium signal?
The LME spot contract traded at a premium of up to $111.75/t over the three-month future — the widest since 2007.
In plain terms = a spot premium — the extra cost of buying metal for immediate delivery over later delivery — widens when "need it now" buyers outnumber available supply.
This reflects an acute tightening in near-term aluminium availability: buyers are paying $111 per tonne extra just to get metal right away.
Why has supply tightened so suddenly?
The Middle East is a major global aluminium smelting hub; conflict this year has forced multiple smelters to shut down or cut capacity.
Iran cited Israeli military operations in Lebanon as the reason to suspend talks with the U.S., adding uncertainty to ceasefire extensions and the reopening of the Strait of Hormuz.
This means → the supply disruption is not a one-off event but an ongoing risk with escalation potential — the geopolitical premium in aluminium prices is unlikely to fade quickly.
Are other industrial metals rallying too?
LME copper rose 0.5% on the same day, to $13,899.50 per tonne.
Investors remain optimistic on industrial-metal demand, directing capital into copper, aluminium and related contracts.
In plain terms = aluminium leads, copper follows — the market is not just trading an aluminium-specific supply squeeze but a broader bullish bet on the entire industrial-metals complex.
Content is for reference only, not financial advice.