Aluminium touches seven-week high on waning stocks

Aluminium prices surged for the seventh consecutive day, reaching their highest level in seven weeks on Tuesday. Concerns over dwindling inventory and persistent supply shortages contributed to the rise in the light metal. The benchmark three-month aluminium on the London Metal Exchange climbed 0.54% to $3,335.5 per metric ton by 0300 GMT.

Earlier, the price had peaked at $3,350 per ton, the metal's highest level since June 23. The most-traded aluminium contract on the Shanghai Futures Exchange experienced a rise of 0.62%, reaching 24,185 yuan ($3,586.20) per ton. Aluminium inventories have plummeted, and analysts anticipate the market to remain in deficit throughout the year.

The US-Iran conflict has disrupted aluminium shipments from the Middle East, which represents almost 9% of global capacity. Hopes for a resolution between the two nations waned on Tuesday following US President Donald Trump's demand for Iranian reparations. Copper also benefited from supply concerns and cooling expectations of persistent US interest rate hikes, with copper prices on the LME up 0.14% and the price on the SHFE increasing 0.58%.

The cash-to-three-month spread on the LME was notably in backwardation at $145.5 per ton, indicating tight physical availability. LME stocks of copper decreased significantly as material was moved from warehouses to the US, anticipating a possible US tariff on refined copper imports. Other metals, such as zinc, lead, nickel, and tin, experienced minor declines in the LME and SHFE markets.