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18.03.202611:12:14UTC+00Aluminum Extends Retreat

Aluminum futures in the UK fell below $3,360 per tonne, extending their pullback from a near four-year high as traders reassessed demand prospects amid the ongoing conflict in the Middle East. Analysts noted that Chinese demand — in the world’s largest aluminum producer and consumer — remains weaker than a year earlier, as elevated prices weigh on consumption, even though operating rates at fabricators have increased since the Lunar New Year holiday.

Prices had surged earlier in the month after US-Israeli strikes on Iran triggered shutdowns and shipping disruptions in a region that accounts for roughly 9% of global supply. More recently, Bahrain’s Alba, the world’s largest single-site aluminum producer, shut down 19% of its 1.6 million tonne-per-year capacity, while Qatar also suspended part of its output due to natural gas shortages.

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