Metals Set For Strong 2026 As Supply Tightens And Demand Stays Firm

Metals markets have stayed strong in 2026. Aluminium has moved the most. Iranian strikes knocked out close to 3 million metric tonnes of yearly smelting capacity in the Middle East within days.

The conflict in the region has driven most of this move. Iran hit two large aluminium smelters in the UAE and Bahrain. That wiped out a big chunk of supply almost overnight. Prices jumped more than 11% as of 16 April on the London Metal Exchange. Levels not seen since Russia’s Ukraine invasion in 2022.

The rise is not just about aluminium. Copper has edged up. Tin has gained too. Zinc and lead have also moved higher. Each metal has its own reasons, but the broader trend is clear.

Metals Price Movement So Far In 2026

• Aluminium: Up 18%

• Copper: Up 6%

• Tin: Up 25%

• Zinc: Up 10%

• Nickel: Up 9%

What Is Driving Each Metal?

Copper's case is structural. Years of underinvestment in mining have left the supply pipeline too thin to keep up with demand from electric vehicles, power grids and artificial intelligence (AI) data centre construction. Inventories in Shanghai have been declining, logistical constraints persist, and no major new mines are coming online quickly enough to change the picture.

Tin is rising on the back of strong demand from electronics. Supply of refined tin also remains tight, which is adding support.

Zinc has come into focus because of China. The country contributes about 9% to global supply and around 16% to exports. So even small changes in its production policy can move the global market.

Nickel stayed slightly weak. Supply from Indonesia continues to rise and keeps prices under pressure. At the same time, long-term demand from electric vehicles still supports the outlook.

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The Broader Supply Picture

Iran’s continued control of the Strait of Hormuz adds pressure to global supply, as it remains a key route for moving Middle Eastern metals.

At the same time, the damaged facility in Abu Dhabi will take at least a year to repair, making the loss of capacity more than just a short-term issue.

The Middle East contributes over 20% of global non-Chinese aluminium supply, so any disruption here can have a wider impact on availability.

Sources:

CNBC

Latitude Media