Aluminium touches three-week high, supply back in focus

Business Recorder reported that aluminium prices climbed on Thursday, lifting the three-month London Metal Exchange contract 0.3% to $3,293.5 a metric ton by 0300 GMT. The metal had earlier reached $3,306.50, its highest level since August 13. On the Shanghai Futures Exchange, the most-traded contract gained 1.08%, reaching 24,320 yuan per ton.

Rupankar RM, head of market research and data intelligence at AL Circle, credited the gains to physical destocking, hopes of a seasonal rebound in Chinese demand and limited supply growth. Analysts still expect a deficit this year, even as hopes grow for returning output from major Middle East producers, and LME inventories of the metal, which is used in manufacturing and autos, sit near a 36-year low.

Copper and zinc, the metals that drove Wednesday's declines, posted mixed gains, with LME copper up 0.14% and zinc 0.36% higher. The US dollar index slipped 0.13%, while market odds of a September US rate increase eased from 67% on Monday to 62%.