Aluminium slips on firmer dollar, but heads for biggest weekly gain in a month
- The most-traded aluminium on the Shanghai Futures Exchange was down 0.66% at 24,690 yuan per metric ton
BEIJING: Aluminium fell on Friday, as a stronger dollar and mounting concerns over a potential economic recession after dimming hopes of a quick end to the Iran war outweighed supply fears that kept prices of the metal on track for a weekly gain.
The most-traded aluminium on the Shanghai Futures Exchange was down 0.66% at 24,690 yuan ($3,586.94) per metric ton, as of 0152 GMT.
It has risen 3.2% so far this week, the biggest weekly gain in a month. The London Metal Exchange (LME) will be closed on Friday and on Monday for the Easter holiday.
The dollar strengthened after US President Donald Trump’s speech on Iran undermined market expectations of a swift end to the war, rekindling fears of inflation, interest rate hikes, and a potential recession.
A stronger dollar weighs on commodities denominated in the greenback, making them less affordable for investors using other currencies. Prices of the light metal used in transport, construction, and packaging touched nearly a four-year peak earlier this week as Iran’s attacks on two major Middle East aluminium producers intensified fears of a larger supply loss in the Gulf that accounted for roughly 9% of global supply before the war.
But Chinese exporters of aluminium products are now expected to have a much better year as the Iran war tightens global supply and boosts margins, with some earlier forecasts for flat shipments revised sharply higher.
For other SHFE metals, copper dipped 0.1%, nickel nudged down 0.09%, tin shed 0.55%, and zinc slipped 1.18% while lead added 0.18%.
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