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The global aluminium market has experienced volatility due to escalating geopolitical tensions in the Middle East, particularly following recent conflicts in the Red Sea and Gulf regions. Key producers like Saudi Arabia and the UAE, which supply over 15% of global aluminium, have reported minor supply chain disruptions. However, prices have stabilized near key resistance levels as buyers anticipate long-term demand from construction and automotive sectors. Analysts note that while short-term risks persist, the market's resilience stems from diversified production hubs in Asia and North America. Traders should monitor weekly production data from Middle Eastern smelters and geopolitical developments in the Red Sea. The conflict's impact on shipping routes could indirectly affect freight costs, which may influence aluminium prices in the coming weeks.
