Aluminum Falls to Lowest Since February

Aluminum futures in the UK were at $3,050 per tonne, hovering at their lowest level since February, weighed down by a stronger US dollar, easing concerns over Gulf supply disruptions, and expanding aluminum production capacity in Indonesia. Macquarie recently lowered its forecast for the global aluminum supply deficit as smelter restarts in the Middle East progressed faster than expected. In late August, Emirates Global Aluminium said that a quarter of its Al Taweelah smelter in Abu Dhabi had resumed operations as recovery efforts continued following damage from an Iranian attack in March. In addition, Rio Tinto secured an agreement to keep its Bell Bay Aluminium smelter in Tasmania operational through the end of 2031, further boosting supply prospects. Meanwhile, the US dollar hovered near an 18-month high, putting further pressure on dollar-denominated commodities. Weaker demand expectations in China also weighed on LME aluminum prices to some extent.