March 6 (Reuters) - Aluminium prices rose again on Friday after snapping a three-day winning streak in the previous session, and were heading for their biggest weekly jump in more than 18 months as supply concerns due to the U.S.-Israel war on Iran intensified.
Benchmark three-month aluminium on the London Metal Exchange was up 1.9% at $3,360 per metric ton in official open outcry activity, close to a near four-year peak of $3,418 struck on Wednesday as the Mideast crisis threatened to cut off aluminium shipments from the region via the Strait of Hormuz.
LME aluminium was on course to gain 7.3% this week, which would mark its biggest weekly jump since August 2024. Qatari smelter Qatalum and Aluminium Bahrain (ALBH.BH), have already declared force majeure on shipments.
"Given the Middle East accounts for around 9% of global production and supply is at risk, we have raised our shortfall forecast to 1.5 million tons from 1 million tons" for 2026, Bank of America said in a note.
Israel pounded Lebanese capital Beirut on Friday in a major expansion of the war against Iran.
LME aluminium inventories slipped by 2,250 tons to 456,875 tons, the lowest since July, while Shanghai Futures Exchange aluminium stocks rose 10.8% from a week ago to 394,498 tons, the highest since April 2020.
LME copper meanwhile fell 0.5% to $12,840 per ton, coming under pressure from high inventories. Copper stocks in LME warehouses climbed by another 2,450 tons to 284,325 tons, the most since October 2024, following inflows in Singapore and New Orleans.
Copper, used in power, construction and manufacturing, was on course to shed 3.8% this week for its steepest weekly dip since the week ended April 4, 2025.
Zinc added 1.1% to $3,262, lead inched down 0.1% to $1,940.50, nickel gained 0.9% to $17,380 and tin rose 0.5% to $50,150.
Reporting by Tom Daly; additional reporting by Lewis Jackson and Dylan Duan; Editing by Rashmi Aich, Harikrishnan Nair and Jan Harvey
