Aluminum Prices Plummet Amid Supply Gains and Strong Dollar
Aluminum prices have taken a hit, falling to their lowest level in over three weeks. The UK's aluminum futures dropped below $3,250 per ton, weighed down by improving supply and a stronger US dollar.
The global market is seeing a significant increase in supply as several smelters work to restart idled capacity and others plan expansions. Meanwhile, rising Chinese exports are offsetting some losses from the Gulf region, where aluminum exports climbed 17.2% year on year in August.
However, disruptions to shipping through the Strait of Hormuz have severely constrained regional exports, with GCC production falling 44% year on year in July. The stronger US dollar is also making dollar-denominated commodities more expensive for global buyers, adding to aluminum's woes.