Aluminum Rises as Looming Smelter Closure Adds to Supply Strains

Aluminum led most industrial metals higher as the looming closure of a smelter in Mozambique underscored the growing constraints on supplies in key consumer markets.

Prices rallied as much as 2% to the highest in almost two weeks in London, as South32 Ltd. confirmed that it’s still planning to mothball its Mozal smelter in Mozambique next month, despite receiving some “inbound interest” in the asset. While the plant is small relative to China’s powerhouse aluminum industry, it’s a major supplier to the European market, and its closure adds to growing supply constraints weighing on key manufacturing hubs worldwide.