Aluminum Prices Soar on Shrinking Inventories and Tight Supply

Aluminum prices have been on a tear, logging their sixth straight daily gain and hitting a near seven-week high. The London Metal Exchange (LME) saw three-month aluminum trade at around $3,323 a metric ton, its highest since June 23rd.

The market's bullish mood is being fueled by a tight supply picture, particularly in copper. Inventories on the LME are shrinking, with 'on-warrant' aluminum stockpiles falling to 244,650 tons, the lowest since April 2025. China's Shanghai Futures Exchange also reported a weekly draw of 13,000 tons.

ING, a Dutch bank, notes that fundamentals remain supportive and the market is expected to run a supply deficit this year. This means demand outstrips supply, contributing to the upward pressure on prices.