Aluminum Drops to Near 3-Month Low

Aluminum futures in the UK fell to around $3,120 per tonne, their lowest level since early July, weighed down by a robust US dollar and expectations of improving supply. The greenback extended its gains as inflation concerns reinforced expectations of tighter Federal Reserve policy. A strong US dollar reduces the appeal of greenback-priced commodities by making them more expensive for global buyers. Meanwhile, several smelters are preparing to restart idled capacity, while others are expanding and upgrading smelting capacity, raising expectations of a gradual recovery in global supply. Rising Chinese exports are also helping cushion the impact of production losses in the Persian Gulf, with shipments increasing 17.2% year-on-year in August as weak domestic demand and elevated inventories allowed more metal to flow into overseas markets.

Aluminum decreased to 3223.00 USD/T, the lowest since August 2026. Over the past 4 weeks, Aluminum lost 1.66%, and in the last 12 months, it increased 20.21%.

Aluminum futures in the UK fell toward $3,230 per ton, a four-week low, as prospects of improving supply and a stronger US dollar weighed on prices. Several smelters are working to restart and bring previously idled capacity back online, while others are moving ahead with expansion plans. Rising Chinese exports are also helping to offset some of the supply losses from the Gulf, with aluminum exports climbing 17.2% year on year in August. The increase comes amid tepid domestic demand and elevated inventories, allowing more metal to flow into overseas markets. The Gulf accounted for roughly 10% of global aluminum supply before the war, but disruptions to shipping through the Strait of Hormuz have severely constrained regional exports, while GCC production fell 44% year on year in July. Meanwhile, hawkish comments from several Federal Reserve officials sent the US dollar higher, making dollar-denominated commodities expensive for global buyers.