Aluminum Moves Lower
Aluminum futures in the UK fell below $3,250 per ton, hovering at their lowest level in more than three weeks, 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.
Aluminum futures in the UK fell below $3,250 per ton, hovering at their lowest level in more than three weeks, 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. 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.