London Metal Exchange (LME) aluminum prices soared past US$3,400 on March 30, closing at US$3,401 after hitting a session peak of US$3,492. This 3.19% jump led the base metals market following retaliatory strikes on major smelting facilities in the UAE and Bahrain. These targeted plants represent roughly 9% of the global aluminum supply, triggering intense inventory fears.

Year-to-date, prices have risen by 13.5%. In addition to supply threats, rising oil prices and shipping fees have pushed smelting costs higher, as energy typically accounts for 40% of production expenses.

Remarkably, aluminum has now surpassed zinc, which closed at US$3,182, a rare market inversion. Market participants are now watching to see if prices will challenge the previous all-time record of US$4,073.50.