Aluminium climbs to three-week high as tightness back in focus
LONDON: Aluminium rose for a fifth straight session on Thursday, touching its highest in three weeks on continued supply tightness and a slight improvement in economic risk sentiment that also boosted other industrial metals. Benchmark three-month aluminium on the London Metal Exchange was up 0.4% at $3,298 a metric ton by 0910 GMT. The metal earlier hit $3,306.50 for its highest since August 13.…
Aluminium prices surged to a three-week high on Thursday, propelled by ongoing supply constraints and a modest uptick in economic outlook, which also bolstered other industrial metals. The London Metal Exchange's benchmark three-month aluminium reached $3,298 a metric ton, marking its highest point since August 13. Strategist Ewa Manthey attributed the rise to physical market tightness and expectations of stronger seasonal demand in China. Currently, LME aluminium stocks sit at 245,975 tons, the lowest level since 1990.
In China, the top metals consumer, Shanghai Futures Exchange inventories have been declining for 11 consecutive weeks, dropping from a six-year high of 528,885 tons on June 12 to 391,498 tons. Despite hopes for increased supply from Middle Eastern smelters, which contribute around 9% of global capacity, analysts predict the aluminium market will remain in deficit this year. Copper, zinc, lead, and tin also experienced fluctuations due to a strong dollar impacting industrial metals.
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