Aluminum Falls to Year-to-Date Low
Aluminum futures in the UK fell to $3,020 per tonne in October, the lowest level year-to-date, fully erasing the rally since the start of the war between Iran and the US amid a stronger dollar and ample supply outside the Middle East. Aluminum smelting infrastructure in the Middle East was restarted at a faster pace than previously signaled following damage to facilities and operational halts caused by disruptions to natural gas production chains in the region. Emirates Global Aluminium said that a quarter of its Al Taweelah smelter in Abu Dhabi had resumed operations. 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. Softer demand in China also lowered bids from manufacturers. New yuan loans continued to soften in September, reflecting limited stimulus from the central government to prop up a fragile manufacturing sector.
Aluminum futures in the UK fell to $3,020 per tonne in October, the lowest level year-to-date, fully erasing the rally since the start of the war between Iran and the US amid a stronger dollar and ample supply outside the Middle East. Aluminum smelting infrastructure in the Middle East was restarted at a faster pace than previously signaled following damage to facilities and operational halts caused by disruptions to natural gas production chains in the region. Emirates Global Aluminium said that a quarter of its Al Taweelah smelter in Abu Dhabi had resumed operations.
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. Softer demand in China also lowered bids from manufacturers. New yuan loans continued to soften in September, reflecting limited stimulus from the central government to prop up a fragile manufacturing sector.