Finance
Traders Raid Lme Aluminium Stockpiles as Shortages Loom
Published by Global Banking & Finance Review®
Posted on March 10, 2026
2 min readLast updated: April 1, 2026
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Published by Global Banking & Finance Review®
Posted on March 10, 2026
2 min readLast updated: April 1, 2026
Add as preferred source on GoogleLME aluminium inventories have seen nearly 40% of stocks earmarked for delivery amid soaring backwardation, driven by Middle East shipping disruptions. Inventories are at multi-year lows, pushing spot premiums and regional supply worries higher.
March 10 (Reuters) - Almost 40% of London Metal Exchange aluminium inventories have been cancelled, or earmarked for delivery out of approved warehouses, as industry sources say the metal could be shipped to countries left short by the closure of the Strait of Hormuz.
A total of 98,150 tons of warranted aluminium - that available for delivery - was cancelled in warehouses in Port Klang, Malaysia on Monday, LME data shows.
It was not immediately clear which entity or entities had made the cancellation or why; the backwardation structure in the market typically attracts metal to the LME.
Worries about tighter supplies have created a backwardation, or premium along the aluminium contract maturity curve.
The premium for the cash LME aluminium contract over the three-month forward hit a high of $59 a metric ton on Monday, the most since February 2022 in the immediate aftermath of Russia's full-scale invasion of Ukraine.
Total LME aluminium stocks are at 452,375 tons, the lowest since July - and 39.5% of that volume has been marked for delivery out.
More than 45,000 tons of aluminium were cancelled in LME warehouses in Port Klang last week.
Gulf smelters Qatalum and Aluminium Bahrain have already declared force majeure to customers as they are unable to ship due to the conflict in the Middle East.
(Reporting by Tom Daly; Editing by Chizu Nomiyama )
Almost 40% of London Metal Exchange aluminium inventories have been cancelled or earmarked for delivery out of approved warehouses.
The largest cancellation occurred in Port Klang, Malaysia, where 98,150 tons of aluminium were cancelled.
A backwardation structure has emerged, with a premium on the cash LME aluminium contract over the three-month forward contract.
Smelters like Qatalum and Aluminium Bahrain have declared force majeure as they are unable to ship due to conflict in the region.
Total LME aluminium stocks are at 452,375 tons, the lowest since July, with 39.5% marked for delivery out.
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