Aluminium Prices Remain Volatile Amid Crude Oil Price Hikes and Middle East Supply Disruptions
The aluminium market has been experiencing price volatility in 2026 due to several factors. The Global Commodity Conclave 2026 highlighted that the market's sensitivity to crude oil prices and supply disruptions from the Middle East conflict is a significant contributor to this volatility.
According to S&P Global, the rise in oil prices led to an increase in aluminium prices. LME aluminium rallied alongside Brent, with spot premiums widening during peak volatility. Despite a mid-2026 pullback, both LME cash and 3-month aluminium remained roughly 30 to 40 per cent above their 2024 baseline.
Manoj Kumar Jain, Director and Head, Commodity & Currency, stated that aluminium prices have been in a volatile state for the past two to three months primarily due to the Middle East crisis. He added that the aluminium price on MCX rose to INR 400 per kg during the peak of the disruption, equivalent to USD 4,190.65 per tonne on LME.
Jain is hopeful about the market's future, predicting a good consolidation in prices and a possible regain in momentum. He expects prices to touch USD 3,400-3,440 per tonne on LME and INR 380-382 per kg in the domestic market.