Aluminium Prices Slide on Renewed Middle East Supply Concerns

Aluminium prices fell marginally by 0.03% to ₹348.05 due to rising oil prices and increased inflation worries caused by renewed Middle East supply concerns.

The ongoing US-Iran conflict has disrupted Middle East aluminium production, with Gulf Cooperation Council output plunging 44% year-on-year in July to 293,000 tonnes from 523,000 tonnes, while the region's daily production fell more than 10% month-on-month to 9,800 tonnes.

Global primary aluminium output declined 1.7% year-on-year to 6.16 million tonnes in July, although stronger Chinese production partly offset Gulf losses, with China producing an estimated 3.866 million tonnes, up 2.7% year-on-year.