[SMM Flash News] LME Aluminum Ingot Inventory Destocked 2,500 mt on May 5

Russian-origin aluminium accounted for 93% of available aluminium stocks in London Metal Exchange (LME) warehouses at the end of May, up from 72% in April, according to exchange data. The increase was largely driven by significant withdrawals of Indian-origin metal from LME warehouses. Total on-warrant aluminium inventories fell 23% during May to 254,625 tonnes and have since declined further to 250,525 tonnes, the lowest level since May 2025. While Russian aluminium inventories fell slightly by 3,950 tonnes to 237,175 tonnes, Indian-origin stocks dropped by 71,750 tonnes, leaving only 17,450 tonnes on warrant. Market participants noted that supply disruptions and logistical challenges in the Middle East continue to tighten global aluminium availability. Despite being eligible for LME trading if produced before April 13, 2024, Russian aluminium remains avoided by many traders.

Irish authorities are reviewing reports that alumina exports from the Russian-owned Aughinish Alumina refinery may have indirectly reached entities linked to Russia’s defence industry, increasing scrutiny of strategic raw material supply chains. Earlier reports suggested that 83% of Ireland’s alumina exports in Q1 2026 were shipped to Russia, but Irish Enterprise Minister Peter Burke later clarified that the actual share was closer to 45%, with a similar proportion exported to the EU and other international markets. EU foreign policy chief Kaja Kallas stated that the bloc must ensure exports do not indirectly support Russia’s military sector and called for stronger sanctions enforcement and the closure of existing loopholes. The issue has drawn attention to Aughinish Alumina, one of Europe’s largest alumina refineries, located in County Limerick, Ireland.

Alcoa Corporation expects alumina shipments from its Pinjarra refinery in Western Australia to decline by approximately 120,000 tonnes in the second quarter compared with the first quarter after Cyclone Narelle disrupted LNG supplies in March. The refinery, which has an annual alumina production capacity of 4.7 million tonnes, is expected to incur an additional USD30 million in production costs during the quarter. Alcoa also expects around USD15 million in extra fuel costs at its São Luís alumina refinery in Brazil due to ongoing Middle East tensions. The company noted that its alumina business is facing pressure from weak alumina prices and lower-quality bauxite supplies in Western Australia. Following the update, Alcoa shares fell 9.5%.