Aluminum Drops to Lowest in Over 4 Months

Aluminum futures in the UK fell below $3,100 per tonne, the lowest since February, pressured by a stronger US dollar and expectations of renewed metal shipments from the Middle East. The metal extended June's 16% plunge, the steepest monthly drop since 2008, which followed a strong rally from March to May due to disrupted supplies. Expectations of an imminent US interest rate hike have strengthened the greenback, making dollar-denominated commodities more expensive for holders of other currencies. The resumption of trade through the Strait of Hormuz following a US-Iran deal has raised the prospect of a return of supplies from the Persian Gulf, which accounts for nearly a 10th of global aluminum output. Additional downward pressure came from rising production in China, the world's largest producer, as well as increased output from smelters in Indonesia.

Aluminum decreased to 3224.00 USD/T, the lowest since March 2026. Over the past 4 weeks, Aluminum lost 12.28%, and in the last 12 months, it increased 25.28%.

Aluminum futures in the UK dropped below $3,150 per tonne, hitting a three-month low, amid prospects for the resumption of metal exports from the Persian Gulf following progress in US-Iran talks. The two countries have agreed on a roadmap toward a final agreement following their first round of high-level talks, raising expectations for a return of supplies from the Middle East, which makes up roughly 9% of global output. However, uncertainties remain, as major Gulf producers continue to face operational disruptions following earlier Iranian attacks. Additional downside pressure comes from rising output in China, the world’s largest producer, and increased production from smelters in Indonesia. On the demand side, weak economic data from China has added concerns, as the country is also one of the biggest consumers of the metal. A stronger US dollar is also weighing on zinc prices, as it makes dollar-priced commodities more expensive for buyers using other currencies.