03.07.202607:23:59UTC+00Aluminum Rebounds

Aluminum futures in the UK climbed back above $3,100 per tonne, rebounding from a more than four-month low as a weaker US dollar boosted the appeal of dollar-denominated commodities. Softer US labor market data tempered expectations of an imminent interest rate hike, pushing the greenback to a two-week low. At the same time, factory activity in China—one of the world’s largest consumers of aluminum—returned to expansion in June, improving the demand outlook.

Even so, further price gains were capped by signs of stronger supply. The resumption of trade through the Strait of Hormuz following a US–Iran agreement has raised the likelihood of additional shipments from the Persian Gulf, which accounts for nearly 10% of global aluminum production. Meanwhile, output continued to increase in China, the world’s largest producer, and Indonesian smelters also ramped up production.