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Aluminum reaches seven-week peak on declining stocks

Aluminum prices climbed?for the seventh time in seven sessions on Tuesday as concerns about a tight supply?and an ongoing shortage?boosted light metal.

Benchmark 'three-month' aluminum on the London Metal Exchange rose 1.01% to $3,351 per metric ton at 0700 GMT. This was the highest price for aluminum since June 23.

The most traded aluminium contract at the Shanghai Futures Exchange increased by 0.89%, to 24,250 yuan (about $3,595.15) per ton. This is its highest level since June 15.

Rupankar RM is the head of AL Circle's market research and data analytics. "Aluminium’s rise reflects the continued tightness on the physical market. LME inventories are extremely low, and the supply from Bahrain and UAE has yet to fully recover," Rupankar RM said. The U.S. - Iran war has caused a disruption in aluminium shipments originating from Middle East producers, who account for 9%?of?global capacity. The hopes of a 'deal' between the two nations faded Tuesday when U.S. president Donald Trump demanded Iranian compensation.

A rising dollar has dampened copper's support due to supply concerns. A more expensive dollar makes greenback-denominated commodities more expensive for those using other currencies.

The price of copper on the LME fell 0.16% while the price on the SHFE rose 0.31%. Cash-to-three month spread on the LME The price of a ton dropped sharply from $145.5 to $145.5, indicating a tight physical availability.

LME stocks of red metal As traders consider a possible U.S. import tariff on refined copper, prices have dropped sharply. Market participants are closely monitoring macroeconomic data to determine inflation and what it could mean for interest rate changes. Daniel Hynes, senior commodity strategist at ANZ, said that higher rates are likely to affect industrial metals because they will weigh on economic growth.

Zinc fell?0.08% on the LME, while lead remained stable, nickel remained?steady, and tin dropped 0.53%.

Zinc gained 0.41% among SHFE metals. Lead gained 1.02%. Nickel lost 0.38%. Tin lost 1.04%.

(source: Reuters)