Aluminium fell 1.3% to $3,130 a metric ton, after touching $3,115, its lowest since July 7. Copper dropped 0.9% as a stronger dollar and thin trading volumes weighed on metals while China’s markets were closed for a public holiday.
Benchmark three-month aluminium on the London Metal Exchange fell 1.3% to $3,130 a metric ton in official trading after reaching $3,115, its lowest level since July 7. Copper fell 0.9% to $14,287 a ton after touching its lowest since September 17.
Aluminium prices are down 17% since reaching a four-year high in June, as concerns about Gulf supply eased and expectations grew for new Indonesian production capacity. Macquarie lowered its forecast for this year’s global aluminium deficit by 120,000 tons to 820,000 tons, citing faster-than-expected restarts in the Middle East. It said the market is relatively tight in the near term but remains on track for a 410,000-ton surplus in 2027, with average prices forecast at $3,050 that year versus $3,325 this year.
Emirates Global Aluminium said in late August that a quarter of its Al Taweelah smelter in Abu Dhabi had returned online as it recovers from March damage. Rio Tinto secured agreements to keep its Bell Bay Aluminium smelter operating through 2031. Supervisors at Chile’s Escondida copper mine rejected a collective contract offer, paving the way for a potential strike.
