Aluminium Reserves Hit 34-Year Low as Gulf Supply Stalls

Despite the record-low availability, metal prices have remained surprisingly resilient as traders lean on expectations of a swift industrial recovery. Market confidence is currently anchored by reports of operational stabilization at the Al Taweelah smelter in the UAE, supplemented by a steady uptick in export volumes from Chinese and Indonesian producers.

Beneath the surface, the LME inventory profile remains highly vulnerable due to a heavy concentration of Russian metal held by a single entity. This imbalance is compounded by a notable contraction in Indian stock contributions to the exchange. As these inventory pressures persist, the exchange faces an inevitable clash with its existing trading regulations, which were not designed to accommodate such extreme supply-chain volatility.