Why is aluminum falling for a second day, and what specific development triggered the recent price pullback?

Aluminum is falling for a second day because fears of a growing shortage have eased following an announcement by Emirates Global Aluminium PJSC—the Middle East’s biggest smelter—that it plans to restore output to pre-war levels in next year’s first quarter, earlier than expected. This announcement came after an Iranian strike had shut its main smelter in March, and it directly triggered a sharp pullback in aluminum prices on Wednesday.

What was aluminum’s price movement and market context immediately before this decline, and how low are current London Metal Exchange stockpiles?

Before the decline, aluminum had gained for seven straight days amid escalating geopolitical concerns, as Iran and the US appeared to move further away from a deal to reopen the Strait of Hormuz—a critical export route for regional smelters prior to the conflict. Concurrently, aluminum stockpiles on the London Metal Exchange have fallen to their lowest level since 1990, underscoring tight physical supply conditions that had previously supported the rally.

Aluminum Extends Fall From Seven-Week High as Supply Fears Ease

Aug 12, 2026

Aluminum prices dropped after Emirates Global Aluminium announced plans to restore production earlier than expected, easing supply shortage fears. Despite low LME stockpiles, analysts predict downward pressure as supply-demand balance shifts.

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Aluminum Extends Fall From Seven-Week High as Supply Fears Ease

Aluminum Extends Fall From Seven-Week High as Supply Fears Ease

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