Aluminium slides as Trump vows quick Mideast war resolution
Aluminium prices retreated on Tuesday as investors cashed in profits following U.S. President Donald Trump's pledge for a swift end to the Middle East conflict. This eased supply concerns, leading to a significant drop in both Shanghai and London ...
By Reuters |
Agencies
Aluminium prices retreated on Tuesday, dragged down by a flurry of selling among some investors to cash in profits after U.S. President Donald Trump pledged a quick end to the Middle East war, easing concerns over the metal's supply.
The most-traded aluminium contract on the Shanghai Futures Exchange slipped 2.88% to 24,465 yuan ($3,550.95) per metric ton, as of 0153 GMT after hitting the highest since January 30 at 25,860 yuan a day before. Benchmark three-month aluminium on the London Metal Exchange fell 2.11% to $3,314 per ton. The contract touched its highest since March 2022 at $3,544 a ton on Monday. Trump predicted a quick end to the conflict while threatening to escalate the war with Iran if it blocked oil shipments from the Middle East.
"The plunge in (aluminium) prices was mainly triggered by Trump's declaration to end the war," said a Chinese trader on condition of anonymity as he is not authorised to speak to the media.
The U.S.-Israel war against Iran has effectively shut the Strait of Hormuz, disrupting shipments from the Gulf that account for around 9% of global aluminium supply, sparking supply fears and sending prices rocketing higher in the past week.
However, aluminium remains one of the most exposed metals to further escalation in the region, leaving prices vulnerable to renewed upside on any supply shock, ING analysts said in a note.
SHFE copper rose 1.73%, nickel climbed 1.86%, tin surged 5.29% while lead dipped 0.24% and zinc was little changed.
Among other LME metals, copper gained 0.79%, nickel advanced 0.75%, lead edged up 0.08%, zinc added 0.18% while tin shed 0.31%.
($1 = 6.8897 Chinese yuan).
The most-traded aluminium contract on the Shanghai Futures Exchange slipped 2.88% to 24,465 yuan ($3,550.95) per metric ton, as of 0153 GMT after hitting the highest since January 30 at 25,860 yuan a day before. Benchmark three-month aluminium on the London Metal Exchange fell 2.11% to $3,314 per ton. The contract touched its highest since March 2022 at $3,544 a ton on Monday. Trump predicted a quick end to the conflict while threatening to escalate the war with Iran if it blocked oil shipments from the Middle East.
"The plunge in (aluminium) prices was mainly triggered by Trump's declaration to end the war," said a Chinese trader on condition of anonymity as he is not authorised to speak to the media.
The U.S.-Israel war against Iran has effectively shut the Strait of Hormuz, disrupting shipments from the Gulf that account for around 9% of global aluminium supply, sparking supply fears and sending prices rocketing higher in the past week.
However, aluminium remains one of the most exposed metals to further escalation in the region, leaving prices vulnerable to renewed upside on any supply shock, ING analysts said in a note.
SHFE copper rose 1.73%, nickel climbed 1.86%, tin surged 5.29% while lead dipped 0.24% and zinc was little changed.
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Among other LME metals, copper gained 0.79%, nickel advanced 0.75%, lead edged up 0.08%, zinc added 0.18% while tin shed 0.31%.
($1 = 6.8897 Chinese yuan).
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