METALS-Aluminium extends gains as supply concerns linger amid Mideast war

By Amy Lv and Lewis Jackson

BEIJING, March 12 (Reuters) - Aluminium prices extended gains on Thursday, finding continued support from lingering concerns about tightening global supply amid the Middle East conflict that showed no signs of easing.

The most-traded aluminium contract on the Shanghai Futures Exchange SAFcv1 closed daytime trade up 0.38% at 25,240 yuan ($3,669.56) per metric ton.

Benchmark three-month aluminium CMAL3 on the London Metal Exchange advanced 1.32% to $3,502.50 a ton, close to a nearly four-year high of $3,544 touched earlier this week.

The war in the Middle East, a region which accounts for around 9% of global aluminium supply, has effectively frozen shipments through the Strait of Hormuz, sparking supply fears.

The U.S. and Iran have signalled no quick end to their war, with U.S. President Donald Trump saying it was necessary to finish the job and Iran warning that the world should be ready for oil at $200 a barrel after striking tankers in Iraqi waters and other ships near the vital Strait of Hormuz.

The situation remains unstable, leaving aluminium highly sensitive to geopolitical headlines and keeping volatility elevated, ING analysts said in a note.

Commodity trader Mercuria cancelled or earmarked for delivery nearly 100,000 tons of aluminium in LME-approved warehouses in Port Klang, Malaysia MALSTX-TOTAL on Monday.

Analysts at consultancy Benchmark Mineral Intelligence raised their price forecast for aluminium in 2026 to $3,100 a ton from $2,900, as developments materially heightened the likelihood of a more acute supply squeeze.

For other SHFE metals, copper SCFcv1 dipped 0.51%, lead SPBcv1 eased 0.21%, tin SSNcv1 slid 0.89%, and zinc SZNcv1 edged down 0.49%, while nickel SNIcv1 advanced 0.59%.

Among other LME metals, copper CMCU3 nudged down 0.23%, nickel CMNI3 shed 0.27%, while lead CMPB3 edged up 0.08%, tin CMSN3 gained 0.9%, and zinc CMZN3 climbed 0.32%.

($1 = 6.8782 Chinese yuan)