Aluminum Holds Losses
2026-09-14 07:33
By
Judith Sib-at
1 min. read
Aluminum futures in the UK hovered around $3,250 per tonne, holding their retreat from a two-month high as a rising US dollar weighed on dollar-priced commodities.
The greenback firmed up as stubbornly hot US inflation prompted traders to increase bets on a Federal Reserve rate hike later this week.
Still, aluminum remain underpinned by tight supply conditions.
The ongoing US-Iran conflict has disrupted aluminum supply from the Middle East, with GCC production declining 44% year-on-year in July.
The region was responsible for around 10% of global production before the war.
LME inventories remained close to a 36-year low, while SHFE stockpiles continued to fall, pointing to limited availability in the physical market.
However, the supply outlook could improve, with several smelters restarting and ramping up previously curtailed capacity, as well as pursuing expansion projects.
Rising aluminum exports from top producer China could also help ease supply constraints and limit price gains.