- Global aluminium sheet prices followed a firm upward trend during Q1’26 as tightening primary aluminium supply, low inventories, and geopolitical disruptions supported higher conversion and replacement costs across major regions.
- Feedstock pressure remained elevated as aluminium prices increased amid China’s production caps, overseas smelter disruptions, and concerns over alumina and bauxite shipments through the Strait of Hormuz.
- Downstream demand stayed healthy from electric vehicles, photovoltaics, energy storage, packaging, and infrastructure sectors, although cost pass-through remained uneven in traditional industrial applications.
Asia
In Asia, aluminium sheet prices strengthened during Q1’26 as upstream aluminium values in China increased by nearly 4.02% between January and March. Tight domestic supply conditions, low inventories, and strong demand from new energy vehicles, photovoltaics, and energy storage sectors supported market sentiment. China’s production capacity ceiling and constrained global output growth further tightened regional availability. The Iran conflict also increased concern over disruptions through the Strait of Hormuz, a critical route linked to nearly 23% of global primary aluminium supply from the Gulf region.
Europe
In Europe, aluminium sheet prices remained firm as higher upstream aluminium costs and geopolitical risk premiums elevated replacement values throughout the quarter. Concerns regarding reduced Gulf exports, delays in alumina and bauxite shipments, and rising freight and war-risk insurance costs strengthened pricing sentiment. European buyers also faced low international inventories and stronger London Metal Exchange performance, while demand from infrastructure, packaging, and industrial manufacturing sectors remained relatively stable despite energy-sensitive operating conditions.
North America
In North America, aluminium sheet prices stayed supported by tighter global aluminium availability and rising overseas premiums. Market sentiment strengthened as supply concerns linked to the Gulf region pushed U.S. Midwest premiums to record highs during the conflict period. Although the region remained less directly dependent on Gulf aluminium flows than Europe, low global inventories and firm demand from transportation, packaging, aerospace, and energy sectors maintained upward pressure on sheet prices during Q1’26.