Global aluminum prices fell on Tuesday as investors took profits following earlier price increases, while statements by U.S. President Donald Trump about the possibility of a quick resolution to the Middle East conflict eased market concerns about supply disruptions.
The main aluminum contract on the Shanghai Futures Exchange closed at 24,835 yuan per ton, down 1.41% from the previous trading day. The contract previously reached 25,860 yuan on Monday, the highest level since January 30.
On the international market, three-month aluminum on the London Metal Exchange fell 0.78% to $3,359 per ton. The contract had reached $3,544 on Monday, the highest since March 2022.
Traders indicated that the decline in aluminum prices was mainly due to Trump's prediction that the Middle East conflict might be resolved quickly, which alleviated prior market concerns about supply.
Previously, military actions by the US and Israel against Iran caused shipping disruptions in the Strait of Hormuz, a key channel that handles about 9% of global aluminum supply transportation, leading to market fears of supply interruptions and propelling aluminum prices to rise rapidly over the past week.
