Three-month aluminum futures on the London Metal Exchange (LME) stood at US$2,637.5/ton by 1604 GMT on Tuesday, an increase of 1.6%. The hike was due to the surged price of alumina, a key raw material for primary aluminum production.

On the same day, the most traded front-month alumina futures on the Shanghai Futures Exchange (ShFE) hit a record high of CNY 5,003, finally closing at CNY 4,933, up by 2.9%.

Due to supply disruptions from Australia and Guinea, bauxite is in short supply, thereby tightening the alumina supply. Bauxite is a raw ore that can be refined into alumina.