Aluminium prices face inflation headwinds from surging oil costs. Shanghai futures fell 0.26 percent to 25,250 yuan per tonne Friday, though the metal is on track for nearly 3 percent weekly gains driven by Middle East supply disruptions. London's benchmark contract dipped 0.09 percent to $3,513.50 per tonne but remains up 2 percent weekly. The region accounts for roughly 9 percent of global aluminium output, with the ongoing conflict disrupting shipments and raw material flows. Norsk Hydro's decision to maintain Qatalum production at 60 percent capacity provided some relief to supply concerns. However, oil prices hovering near $100 per barrel are stoking inflation fears that pressure base metals broadly. Rising energy costs have also prompted investors to scale back expectations for US rate cuts this year.
