Aluminum Heads for Fourth Weekly Drop on Mideast Supply Return

Aluminum prices are poised for their fourth consecutive weekly decline, marking the longest losing streak since April 2025. This downward trend is attributed to a combination of factors, including a renewed selloff in Asian tech stocks, a stronger US dollar, and the return of supplies from the Middle East. The London Metal Exchange benchmark for three-month aluminum fell 0.3% to $2,240 a tonne on Friday, bringing its weekly loss to 1.4%. Year-to-date, aluminum has seen a 10% decline. The market is also closely watching for any potential impact from the ongoing geopolitical tensions in Eastern Europe, which could further disrupt supply chains. Analysts suggest that the current price levels may present a buying opportunity for investors, but caution that volatility is likely to persist in the short term. The International Aluminium Institute reported that global primary aluminum production increased by 2.5% in the first quarter of 2024 compared to the same period last year, reaching 17.3 million tonnes. This increased output, particularly from China, is contributing to the bearish sentiment in the market.