Stronger Dollar Drives Aluminum Prices to 12-Week Low
The aluminum market has hit a 12-week low due to a stronger US dollar. Benchmark three-month aluminum prices on the London Metal Exchange (LME) fell by 1.7% to $3,115 per metric ton on Thursday.
This decline marks the lowest price since July 7 and is a result of the dollar's strength, which makes dollar-denominated metals more expensive for buyers using other currencies. The dollar has reached its strongest level since April 2025, with Treasury yields hitting their highest in decades.
Macquarie analysts have downgraded their forecast for this year's deficit in the global aluminum market to 820,000 tons, citing faster-than-expected restarts in the Middle East. Despite current tightness in the market, Macquarie still expects a surplus of 410,000 tons in 2027 and predicts average aluminum prices at $3,050 next year.
Copper prices also fell to their lowest level since September 17, while zinc and lead hit their lowest points since August 20 and July 16, respectively. Nickel touched its lowest price since the end of December.