On the other hand, aluminium futures gained support from concerns over potential supply disruptions during the same week. The escalating regional tensions have intensified market anticipation of a possible global primary aluminium shortage. As the Middle East region accounts for around 9 per cent of the world's primary aluminium capacity, interrupted production or shipments through the Strait of Hormuz could tighten global supply, analysts said. A potential supply deficit and stronger import demand in the global primary aluminium market pushed SHFE aluminium futures higher.
Meanwhile, inventories of the three metals in SHFE-registered and bonded warehouses continued to rise during the week. As of March 6, aluminium and copper stocks had climbed by 10.8 per cent and 8.6 per cent respectively from February 27, standing at 394,498 tonnes and 425,145 tonnes. Nickel inventories also increased, though at a slower pace, up by 1.6 per cent on the week to 61,769 tonnes.
