Aluminium Prices Soar on Supply Tightness and Weaker Dollar
Aluminium prices surged to their highest level in over three weeks on supply tightness and a softer US dollar. The metal, which has been rising for five consecutive sessions, touched $3,328.50 per metric ton, its highest price since August 12. Ewa Manthey, commodities strategist at ING, attributed the aluminium market's support to physical market tightness and seasonal demand in China.
LME aluminium stocks are at their lowest level since 1990, with inventories falling from a six-year high of 528,885 tons on June 12 to 391,498 tons. Analysts expect the aluminium market to remain in deficit this year despite hopes for returning supply from smelters in the Middle East.
The softer US dollar is also contributing to the price increase, making dollar-denominated metals more affordable for holders of other currencies. Copper, zinc, lead, and tin prices also rose on Thursday, with copper reaching a record high in July imports and zinc hitting its highest price since 2018.