Zhu Chuang Information: Geopolitical Situation Injects Risk Premium, Aluminum Prices Rise with Volatility

K-LinePoet · 2026-03-23T07:30:03+00:00

Recent spot aluminum prices have fluctuated upward, approaching 24,000 yuan/ton, mainly driven by escalating geopolitical tensions in the Middle East boosting risk-off sentiment and supply-demand concerns triggered by transportation uncertainties. Downstream demand has not yet fully recovered, with general market trading activity. In the short term, aluminum prices may oscillate on the stronger side, but downside risks exist.

K-LinePoet

2026-03-23 07:30:03

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Recent spot aluminum prices have been volatile and rising, approaching 24,000 yuan/ton. As of March 3, the average daily price of A00 aluminum was 23,950 yuan/ton, up 1.40% from the previous day and up 16.15% year-on-year. The main reasons are: macro factors, with recent escalation of Middle East geopolitical tensions boosting risk aversion, significantly increasing precious metal prices and driving the non-ferrous metals market; additionally, Iran’s closure of the Strait of Hormuz has heightened transportation uncertainties, raising market concerns about the stability of overseas electrolytic aluminum supply, which has pushed prices higher; domestically, markets are awaiting guidance from important meetings. Fundamentally, downstream processing plants are cautious in procurement during the initial recovery period amid high aluminum prices, and current demand has not fully recovered, resulting in moderate market trading. In the short term, aluminum prices are expected to fluctuate strongly, but caution is advised as market sentiment may ease, risking a price pullback. (Zhuochuang Information)

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