Weekly review of LME base metals markets covering aluminium, copper, zinc, lead, nickel, and tin, analysing price action, spreads, warehouse stocks, cancelled warrants, and the macro and physical drivers behind trading activity during the week ending 3 July 2026.
For decades, nickel has been priced according to chemistry, purity and form. Increasingly, however, industrial buyers are asking a different question: how was it produced?
Emirates Global Aluminium has reported that restoration work at its Al Taweelah site is progressing ahead of schedule, with 89 of the plant's 1,262 reduction cells restarted as of today.
Hydro's Slovalco aluminium plant in Slovakia has agreed terms with the Slovak government to restart 75,000 tonnes of primary aluminium production capacity, with output expected to begin in the fourth quarter of 2026.
Hydro's Slovalco aluminium plant in Slovakia has agreed terms with the Slovak government to restart 75,000 tonnes of primary aluminium production capacity, with output expected to begin in the fourth quarter of 2026. The restart requires EUR 100 million of investment and will support more than 200 jobs in the region.
The agreement establishes the long-term framework conditions necessary for aluminium production, including a compensation scheme for indirect carbon costs under the EU Emissions Trading System. Slovalco has also signed a long-term commercial power purchase agreement with Vodohospodárska výstavba. The restart remains conditional on European Commission approval of Slovakia's updated indirect carbon cost compensation scheme.
The 75,000 tonnes represents the first phase of a restart at a plant with total annual capacity of 175,000 tonnes. A second phase covering the remaining 100,000 tonnes will depend on framework conditions beyond 2030 and additional power contracts.
Slovalco was curtailed in August 2022 following a surge in European power prices. It is one of many European smelters that have been offline since then. Hydro notes that 50% of EU primary aluminium production capacity has been curtailed since 2022, leaving Europe heavily reliant on imported metal.
Hydro President and CEO Eivind Kallevik said: "Aluminium is essential for the European economy and critical for everything from power grids and renewable energy to transport, defence, and infrastructure. The agreement on Slovalco is important both for Slovakia and for Europe as a whole." Kallevik added that restarting the plant "will strengthen Europe's industrial resilience, reduce dependence on imports and supply European customers with aluminium carrying significantly lower carbon emissions than the global average."
The announcement comes as LME Aluminium cash prices have fallen sharply from the four-year high of $3,855/t reached on 2 June, settling at $3075/t on July 1 as US-Iran diplomatic progress raises expectations of recovering Gulf supply. The recovery of European capacity, however modest in scale, adds a further bearish supply signal to a market already in significant retreat from its recent highs.
Hydro owns 55.3% of Slovalco, with Penta Investments Group holding the remaining 44.7%.
Weekly review of LME base metals markets covering aluminium, copper, zinc, lead, nickel, and tin, analysing price action, spreads, warehouse stocks, cancelled warrants, and the macro and physical drivers behind trading activity during the week ending 3 July 2026.
For decades, nickel has been priced according to chemistry, purity and form. Increasingly, however, industrial buyers are asking a different question: how was it produced?
Emirates Global Aluminium has reported that restoration work at its Al Taweelah site is progressing ahead of schedule, with 89 of the plant's 1,262 reduction cells restarted as of today.
Alcoa Corporation has agreed to acquire South32's entire aluminium value chain for an implied enterprise value of up to $5.6 billion in a deal that represents one of the largest consolidations in the global aluminium industry in years.
Stay connected with our latest developments. Share your details to receive updates and analyses from LME Insight.