Aluminum and Copper Prices Hit Near Seven-Week Highs Amid Supply Stress

Aluminum prices on the London Metal Exchange (LME) have extended their rally to six consecutive daily gains, reaching a near seven-week high as exchange stockpiles continue to decline. The three-month contract traded around $3,323 per metric ton after touching $3,336.50, its strongest level since June 23rd.

The market fundamentals remain supportive, with expectations of a supply deficit this year, meaning demand is projected to outpace supply, according to ING, a Dutch bank. The tightening is most evident in accessible inventories: LME on-warrant aluminum stockpiles fell to 244,650 tons, the lowest since April 2025.

Copper prices are also exhibiting a similar trend through its pricing structure. The metal held above $14,000 per ton, with the LME cash price around $14,170.50. More notably, the market is in a steep backwardation, where near-term prices exceed those for later delivery, with the copper's cash-to-three-month spread reaching $171 per ton, the highest since October 2025.