Latest News

Aluminium prices fall after Iran declares Strait of Hormuz Open

Aluminum prices dropped on Friday, after Iran's foreign minister announced that all commercial vessels could pass through the Strait of Hormuz for a period of time remaining in the ceasefire.

Benchmark 'three-month' aluminium at the?London Metal Exchange was down by 2.6% to $3,549 per metric ton as of 1601 GMT.

The reopening of Strait of Hormuz where navigation was largely suspended after U.S. and Israeli attacks against Iran began on 28 February improves prospects for exports of aluminium from the Gulf -region which account for approximately 9% of the global supply.

The Strait is used by producers in the area to export the majority of their metals to the world market and to import alumina as a raw material.

The Norwegian Shipowners' Association said that there was still caution. They stated that the presence of sea mines and Iranian conditions must be assessed prior to any transit.

Ole Hansen is the head of commodity strategy for Saxo Bank.

The price of aluminium has risen 18% this year. It had hit a four-year high in the previous session, which was $3,672. This is due to a global supply shortage. In April, a Gulf producer stated that it could take a full year to fully restore production at UAE smelters damaged by an Iranian attack in late March.

LME copper increased 0.7% to $13,361.50 per ton, as the dollar fell. This made dollar-priced materials more attractive to buyers who use other currencies. Stocks in the United States and around the world, already trading at record highs, rose even more after Iran's announcement.

Other LME metals such as zinc gained?0.2%, reaching $3,429.50 per ton, after having reached $3,482 at its highest level since January 29. Lead rose 0.6% to $2,963, while tin rose by 0.7% to $53,355, and nickel dropped 0.9% to $8,060. (Reporting and editing by David Goodman Elaine Hardcastle, Nick Zieminski, and Polina Devitt)

(source: Reuters)