Key Moments
- London Metal Exchange three-month aluminum contract fell 0.76% to $3,208 per metric ton, after hitting $3,191 intraday, its lowest since March 24.
- Most-traded Shanghai Futures Exchange aluminum contract closed down 1.43% at 23,405 yuan ($3,439.23) per ton, after touching 23,320 yuan, its weakest level since March 20.
- Prices eased as Middle East risk concerns subsided and the U.S. dollar strengthened, while the market expected a gradual normalization of Gulf region aluminum supply.
Global Aluminum Prices Pull Back
Aluminum prices moved sharply lower on Wednesday, falling to their weakest levels in three months, as the risk premium tied to Middle East tensions diminished and the U.S. dollar gained ground.
On the London Metal Exchange (LME), the benchmark three-month aluminum contract was down 0.76% at $3,208 per metric ton by 0701 GMT. During the session, it slipped to $3,191 per metric ton, the lowest price recorded since March 24.
Shanghai Futures Track the Downtrend
Aluminum futures in China mirrored the decline seen in London. The most actively traded aluminum contract on the Shanghai Futures Exchange ended the session 1.43% lower at 23,405 yuan ($3,439.23) per ton. Earlier trading saw the contract drop to 23,320 yuan per ton, its weakest level since March 20.
| Exchange | Contract | Latest Price | Intraday Low | Change | Recent Low Since |
|---|---|---|---|---|---|
| London Metal Exchange | Three-month aluminum | $3,208 per metric ton | $3,191 per metric ton | -0.76% | March 24 |
| Shanghai Futures Exchange | Most-traded aluminum | 23,405 yuan ($3,439.23) per ton | 23,320 yuan per ton | -1.43% | March 20 |
Market Focus on Gulf Supply Normalization
Analysts noted that the market was pricing in an eventual normalization of aluminum supply from the Gulf region, following earlier disruptions linked to war, shipping issues, and higher energy costs. They said the restoration of these supply flows is expected to be gradual.
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