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 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.
2% year-on-year in August as weak domestic demand and elevated inventories allowed more metal to flow into overseas markets.