- Aluminum markets in Asia remained firm during Q1’26 amid geopolitical uncertainty, constrained supply growth, and low regional inventories.
- Rising concerns over alumina and bauxite supply flows through the Strait of Hormuz, along with China’s production capacity ceiling and overseas smelter disruptions, supported feedstock costs and market sentiment.
- Demand from new energy vehicles, photovoltaics, energy storage, infrastructure, and computing-related applications remained healthy, supporting steady downstream consumption across the region.
Aluminium (Cash) prices in Asia moved upward during Q1’26 due to structural supply tightness and geopolitical supply concerns. In China, prices increased by around 4.02% from January to March as low inventories, domestic production caps, and strong downstream demand supported bullish sentiment. Demand from electric vehicles, photovoltaics, energy storage systems, and advanced computing applications remained robust during the quarter, while traditional manufacturing sectors showed comparatively slower cost pass-through. Market sentiment strengthened further during March following concerns surrounding the Iran conflict and potential disruptions through the Strait of Hormuz, a critical route for Middle Eastern aluminum exports and raw material imports. The Gulf region accounts for nearly 23% of global primary aluminum supply and approximately 9% of global aluminum production capacity, amplifying concerns regarding supply-chain security.