Aluminium prices fell to their weakest levels in three months on Wednesday, pressured by a stronger U.S. dollar and declining geopolitical concerns in the Middle East.
The benchmark three-month aluminium contract on the London Metal Exchange dropped 0.76% to $3,208 per metric ton by 07:01 GMT. Earlier in the session, the metal touched $3,191 per ton, its lowest level since 24 March.
In China, the most actively traded aluminium contract on the Shanghai Futures Exchange lost 1.43%, settling at 23,405 yuan ($3,439.23) per ton. During trading, the contract slipped to 23,320 yuan, marking its lowest point since 20 March.
Market participants noted that expectations for improving supply conditions have weighed on prices. Production and shipping disruptions linked to the conflict in the Gulf region, along with elevated energy costs, had previously supported aluminium markets.
Analysts said investors now expect aluminium supply from Gulf producers to gradually normalise as logistical bottlenecks ease and production conditions improve, reducing the risk premium that had been built into prices.