Spot aluminium on the London Metal Exchange traded $151 a ton above benchmark three-month futures on Wednesday, the highest premium in data spanning more than 30 years, up from $92 a ton on Monday and $94 a ton on Tuesday. LME inventories have fallen 56 percent this year to just under 230,000 tonnes, their lowest since 1990, and Reuters put available stocks at 207,525 tons on Tuesday, down 51 percent since the war on Iran began disrupting Middle East shipments in late February. Bloomberg reported that much of the remaining stock has come under the control of just two traders, which leaves shorts exposed into the November contract’s expiry next week.
LME aluminium spot premium hits record $151 a ton
Spot aluminium on the London Metal Exchange traded $151 a ton above the three-month benchmark on Wednesday, the highest premium in more than 30 years of data, as exchange inventories sit at their lowest since 1990.
Why it matters: A record backwardation means buyers who need metal now cannot wait for futures delivery, and with much of the remaining LME stock reported under the control of just two traders, the squeeze can tighten further into next week's November contract expiry.
Data as of Bloomberg report of November 11, 2026 (headline, opening paragraphs and the $151 premium read via the estate browser route; the full article is paywalled), corroborated by Reuters reporting of November 10, 2026 on the $94 Tuesday premium and available-stock levels, and Informist Media of November 11, 2026 on total inventories just under 230,000 tonnes, down 56 percent this year. Developing item.
Sources
- London Aluminum Market Faces Biggest Supply Squeeze in Decades - Bloomberg - 2026-11-11
- LME Aluminium Premium Hits Five-Month High Amid Tight Inventories - Reuters - 2026-11-10
- Base Metal: Aluminium supply squeeze intensifies as LME stocks hit 1990 low - Informist Media - 2026-11-11