Latest News

Aluminum demand rises on hopes of US-Iran agreement

Aluminum rallied Thursday on expectations of an acute supply shortage due to the Middle East Conflict, as growing hope for a U.S. Iran peace deal improves demand outlook.

Benchmark?three month aluminium at the London Metal Exchange rose 1.27% by 0705 GMT to $3,667.5 a metric ton, its highest since March 24, 2020.

The Shanghai Futures Exchange's most traded aluminium contract closed the daytime trading up 2.89% to 25,635 Yuan ($3,760.62), its highest since March 9.

The optimism grew as a key Pakistani facilitator in Tehran and Trump's administration talked up hopes for a pact that would open the Strait of Hormuz, a crucial waterway in the Middle East.

According to a research report dated April 13, JP Morgan predicted a 1.9 million tonne primary aluminium shortage in 2026. This is the biggest deficit since 2000.

The Iran war has affected the supply of aluminium in the Gulf, which accounted for 9% before the war. Some local aluminium smelters either reduced output or sustained damage from the attacks.

Analysts at JP Morgan expect the price of aluminium to reach $4,000 within the next few months.

Falling inventories were one of the factors that supported aluminium prices and tightened supply. Stocks of aluminium in LME-approved storage facilities Since late February, the price of oil has dropped by about 15%.

Other than that, there are?aluminium stockpiles at three major Japanese port cities In March, the number of people in Canada who travelled abroad fell by 7.4% compared to the previous month.

Analysts said that the hopes of?growing overseas orders for Chinese aluminum and a 'drawdown in Chinese stock also fueled price rise.

SHFE copper increased by 0.39%. Nickel?added 0.52 %, lead increased 0.69%. Zinc?advanced 0.86 %, while Tin was not much changed.

The price of copper increased by 0.76%. Nickel rose 1.31%. Lead edged up by 0.08%. Tin gained 1.2%. Zinc also climbed 0.79%. $1 = 6.8167 Chinese Yuan (Reporting and editing by Amy Lv, Tony Munroe)

(source: Reuters)