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Informist, Tuesday, Mar. 17, 2026

 

By Ashutosh Pati

 

MUMBAI – Futures contracts of aluminium rose on the Multi Commodity Exchange of India and the London Metal Exchange Tuesday on concerns about a prolonged supply disruption due to the military conflict in West Asia.

 

"Aluminium prices rebounded amid concerns that a prolonged conflict involving Iran could disrupt supply from the region, which accounts for nearly 9% of global production," Kotak Securities said in a report. "Recent drone attacks by Iran on energy infrastructure in Gulf countries, along with threats by (US President) Donald Trump to expand strikes targeting Iran's key export hubs, have added to uncertainty around the duration and intensity of the conflict," the brokerage said.

 

The closure of the Strait of Hormuz, a critical route for West Asian producers to transport aluminium and raw materials, has led major producers to cut output. If the disruptions persist, additional curtailments could begin within the next one to two weeks as inventories are depleted, according to Ewa Manthey, commodities strategist at ING Economics.

 

Aluminium smelters in the Gulf rely on continuous imports of raw materials such as alumina and usually hold around three to four weeks' worth of inventory. "This limited buffer leaves production vulnerable to shipping disruptions, particularly as alumina cannot be stored for extended periods," Manthey said. The region produces only around 3% of global alumina and about 1% of bauxite, leaving smelters highly dependent on seaborne supply. With the conflict in its third week, a large portion of this buffer may already have been drawn down, she said.

 

Kotak said base metals are likely to trade in a range in the near term due to heightened geopolitical tensions and caution ahead of the US Federal Reserve's monetary policy decision Wednesday.

 

At 1655 IST, on the MCX, the March futures contract of:

--Aluminium was at INR 344.45 a kg, up 0.6%
--COPPER was at INR 1,176.85 a kg, down 0.4%
–-LEAD was at INR 187.35 a kg, up 0.3%
–-ZINC was at INR 319.05 a kg, down 1.2%

--NICKEL was at INR 1,589.90 a kg, up 1.8%

 

Trading levels for the day on the MCX:
--Aluminium contract seen at INR 341.00-INR 347.00

--Copper contract seen at INR 1,165.00-INR 1,190.00
--Lead contract seen at INR 186.00-INR 189.00

--Zinc contract seen at INR 317.00-INR 322.00

--Nickel contract seen at INR 1,580.00-INR 1,625.00

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Saji George Titus

 

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