Aluminum falls to a three-month low as concerns over Gulf supply disruptions ease

Aluminum prices on the London Metal Exchange (LME) declined sharply, reaching their lowest levels in nearly three months after the United States granted Iran a 60-day sanctions waiver following preliminary peace talks.

The development strengthened expectations for the resumption of trade flows through the Strait of Hormuz, easing concerns over supply disruptions that had previously supported aluminum prices.

The LME cash aluminum bid price fell to $3,263 per metric ton on June 23, down from $3,403 per ton on June 22, a decline of 4.11%.

The cash offer price also dropped to $3,263.50 per ton from $3,405 per ton, marking a decline of 4.16%.

Benchmark aluminum contracts decline under market pressure

The benchmark three-month aluminum contract also moved lower, with the bid price falling to $3,269 per ton from $3,405 per ton, a decline of 3.99%.

The offer price for the same contract fell to $3,271 per ton from $3,406 per ton, down 3.96%.

Across the futures curve, the December 2027 aluminum contract also weakened, with the bid price declining to $3,115 per ton from $3,180 per ton, while the offer price fell to $3,120 per ton from $3,185 per ton, representing declines of roughly 2.04% in both cases.

The Asian benchmark price for the three-month aluminum contract on the LME stood at $3,232.50 per ton on June 23, reflecting the broader weakness prevailing in the aluminum market.

Exchange inventories decline as canceled warrants fall

Inventory data showed a slight decline in exchange-registered aluminum stocks, with opening inventories on the London Metal Exchange falling to 313,800 tons on June 23 from 315,300 tons on June 22.

The decrease amounted to 1,500 tons, or 0.48%.

Live warrants remained unchanged at 247,575 tons, while canceled warrants declined to 64,150 tons from 66,225 tons, a decrease of 2,075 tons, or 3.13%.

The decline in canceled warrants indicates a reduction in the volume of metal earmarked for withdrawal from LME warehouses.

Meanwhile, the alumina price, according to the S&P Global Platts benchmark, stood at $307.10 per ton.