Aluminium: Supply shock supports elevated prices – TD Securities

💡 DMK Insight

Aluminium’s supply chain is taking a hit due to Gulf tensions, and here’s why that matters: With Bahrain and Qatar smelters reducing output and Alba declaring force majeure, traders should brace for potential price spikes. This disruption comes at a time when global demand is still recovering, and any further supply constraints could push prices higher. Watch for how this impacts related markets, especially copper and other base metals, as they often move in tandem with aluminium. If you’re trading aluminium futures, keep an eye on the $2,500 resistance level; a break above could signal a bullish trend. But don’t overlook the flip side—if tensions ease or production resumes, we could see a rapid correction. Monitor geopolitical developments closely, as they could shift market sentiment quickly. The next few weeks will be crucial, so be prepared for volatility and adjust your positions accordingly.