Aluminium falls to 2-month low on Iran peace hopes, stronger dollar
AA•Aluminium fell to its lowest level in more than two months as hopes for improved Middle East supply and a stronger dollar weighed on prices. LME aluminium was down 0.74% at $3,146 a metric ton after touching $3,141, its lowest since July 28.
1. Aluminium hits low
Benchmark three-month aluminium on the London Metal Exchange fell 0.74% to $3,146 a metric ton by 0300 GMT, after touching $3,141, its lowest level since July 28. The market weighed whether easing US-Iran tensions could improve supply from the Middle East.
2. Talks and dollar weigh
Tehran said it had received a US response to its latest proposal to revive the collapsed Gulf ceasefire, days after President Donald Trump said he had rejected it. BNP Paribas metals strategy head David Wilson said news pointing to a reopening of the strait could undermine aluminium prices because of the metal’s sensitivity to flows through the Gulf. The dollar hovered near a two-month high as Treasury yields rose, reflecting investor concerns about inflation and government debt.
3. Other metals mixed
LME copper edged down 0.08%, while zinc fell 0.4%, lead slipped 0.16% and nickel dipped 0.05%; tin rose 0.18%. The Shanghai Futures Exchange was closed for China’s National Day holiday and was due to reopen on October 8.
