Aluminium gains on supply uncertainty and broad risk-on mood
XLB•London aluminium rose 0.58% to $3,105 a metric ton, supported by supply uncertainty and improving risk appetite, while Shanghai aluminium edged 0.11% lower to 23,715 yuan.
1. London aluminium rises
Benchmark three-month aluminium on the London Metal Exchange was up 0.58% at $3,105 a metric ton by 0730 GMT. The Shanghai Futures Exchange’s most-traded aluminium contract edged 0.11% lower to 23,715 yuan after reaching a four-week high earlier in the session.
2. Supply tightness supports prices
The LME cash-to-three-month spread was in a $27.64-a-ton backwardation, signalling tight near-term availability. Orders were placed to withdraw 3,500 tons from LME-registered warehouses in Asia, while aluminium volumes in Shanghai Futures Exchange-monitored warehouses fell more than 10% last week to 212,858 tons.
3. Risk appetite improves
A Singapore-based trader cited improving risk appetite, with aluminium tracking gains in equity markets buoyed by renewed AI optimism. An analyst said healthy trading volumes and firm prices pointed to buying conviction, while supply uncertainty and limited prompt availability provided support.
