Aluminum Near 2-Month Lows
2026-06-18 07:16
By
Judith Sib-at
1 min. read
Aluminum futures in the UK fell to $3,400 per tonne, close to an over two-month low, as an interim US-Iran peace deal eased supply concerns.
The two nations remotely signed a memorandum of understanding to end their war and reopen the Strait of Hormuz, allowing metal exports from the Persian Gulf, which accounts for roughly 9% of global aluminum production, to resume.
Still, there remains uncertainty over how quickly supply chains can recover, given as key Gulf producers are facing operational challenges following earlier Iranian attacks.
Additional downside risks come from rising output in China, the world’s largest producer, and increasing supply from smelters in Indonesia.
In addition, weak economic data from China has raised concerns over demand as the country is also one of the biggest consumers of the metal.
Further weighing on prices, the Federal Reserve’s hawkish hold lifted the US dollar, making greenback-priced commodities expensive for foreign buyers.