Aluminium climbs to three-week high on supply tightness, softer dollar

LONDON, Sept. 3 (Reuters) - Aluminium rose for a fifth straight session on Thursday, touching its highest price in more than three weeks on supply tightness and a softer dollar, which also boosted other industrial metals.

Benchmark three-month aluminium on the London Metal Exchange was up 0.8% at $3,308.50 a metric ton as of 1600 GMT. The metal earlier hit $3,328.50 for its highest price since August 12.

"Aluminium is supported by physical market tightness and expectations of firmer seasonal demand in China," said Ewa Manthey, commodities strategist at ING.

LME aluminium stocks of 245,975 tons are at their lowest level since 1990. In top metals consumer China, Shanghai Futures Exchange inventories have fallen for 11 weeks running, from a six-year high of 528,885 tons on June 12 to 391,498 tons.

Analysts expect the aluminium market to remain in deficit this year despite hopes for returning supply from smelters in the Middle East, which accounts for about 9% of global capacity.