LONDON: Aluminium prices rose to a one-week high on Friday, supported by persistent supply concerns, while copper was set for a third weekly loss as inventories keep rising.
London Metal Exchange benchmark three-month aluminium rose 0.3percent to USD3,078 a metric ton in official open-outcry trading after touching USD3,103 for its strongest since February 13. LME aluminium has slipped 8percent since hitting USD3,356 a ton on January 29, its highest since April 2022.
“Aluminium continues to outperform the complex because supply growth remains constrained globally, making it more sensitive to small improvements in sentiment,” said ING commodities strategist Ewa Manthey.
Output in leading producer China has recently reached the government-mandated annual production cap of 45 million tons while another smelter has shut in the US because of high power prices.
The rest of the market was mixed in moderate volumes owing to the closure of the Shanghai Futures Exchange for Lunar New Year holidays. The market reopens on February 24.
“There’s been some week-end squaring after a volatile run, and some light adjustment ahead of Chinese participants returning next week, when liquidity and price discovery typically improve,” Manthey said. LME copper added 0.1percent in official activity to USD12,820 a ton but was poised for a weekly decline of about 1percent.
Copper stocks in LME-approved warehouses climbed by 9,575 tons to 235,150 tons, data showed on Friday, for the highest level since March 2025. Inventories have shot up by 65percent so far this year.
Weighing on the broader metals market was a firmer dollar, which was on track for its largest weekly gain since October after a run of better than expected economic data and a more hawkish Federal Reserve outlook.
A stronger dollar makes commodities priced in the US currency more expensive for buyers using other currencies. Among other metals, LME zinc ticked up 0.1percent to USD3,343 a ton, nickel added 0.3percent to USD17,330 and tin shed 0.3percent to USD45,500 while lead lost 0.4percent to USD1,947.