Aluminum Falls on Likely US Tariff Slash

Aluminum futures in the UK fell to $3,050 per tonne, maintaining the pullback since the three-year high of $3,270 on January 28th, following reports that the US is due to reduce their tariffs on the metal. The Trump administration was planning to scale back tariffs on aluminum that were doubled to 50% last year, to address sticky inflation in for manufacturers. The move was due to improve the flow of metal into the US in the near term, prompting traders to sell metal from LME warehouses. Still, aluminum remained higher on the year amid risks to supply. Output in China is expected to stall after the major producer hit its output cap of 45 million tons last year. Moves by Chinese smelters to build new alternative plants in Indonesia continued to face troubles amid higher energy costs and local regulations risks. Meanwhile, high energy costs, equipment failure, and difficulty in sourcing bauxite, suspended key smelters in other countries including Iceland, Mozambique, and Australia.

Aluminum futures in the UK fell toward $3,100 per tonne from the three-year high of $3,270 on January 28th, tracking the aggressive pullback for base metals after traders reconsidered their speculative positions. Base metals eased from their respective peaks from earlier in the year as investors reconsidered concerns of a dollar debasement and speculative usage of metals for soaring datacenter investment globally. Still, contracts remained higher this year an the outlook of lower supply by the world's top producers. Output of primary aluminum in China is expected to stall after the major producer hit its output cap of 45 million tons last year. Moves by Chinese smelters to build new alternative plants in Indonesia continued to face troubles amid higher energy costs and local regulations risks. Meanwhile, high energy costs, equipment failure, difficulty in sourcing bauxite, and geopolitical risks suspended key smelters in other countries including Iceland, Mozambique, and Australia.

Aluminum decreased to 3031.00 USD/T, the lowest since January 2026. Over the past 4 weeks, Aluminum gained 4.06%, and in the last 12 months, it increased 20.13%.