Aluminum Moves Lower on Stronger U.S. Dollar

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• LME Aluminum 3M Select trades $-5.50 lower to $3079.50 at 8:25:38 AM

  • (Bloomberg) – Aluminum fell to the lowest since mid-February as a strengthening US dollar and the easing of tensions in the Middle East continued to pressure commodities.  The industrial metal extended losses after dropping by 16% in June, the biggest monthly decline since 2008. The winding down of the Middle East war has weighed on aluminum prices, which surged from March to May on the loss of supply from the region that accounts for nearly a 10th of global output.  “Aluminium has suffered a significant collapse, trading back to pre-war levels. It smells of wrong-footed longs getting crushed, thereby exacerbating the weakness,” Saxo Bank’s head of commodity strategy Ole Hansen said.  A gauge of the dollar rose for a second day. It has rallied 2.5% over the last two months, partially due to a more hawkish stance from the Federal Reserve. That makes commodities priced in the currency more expensive for many buyers.  Investors are worried about further gains in the US currency, which affects sentiment across industrial metals, as well as gold and silver, said Zhenting Zhou, a trader at Hangzhou Chenglian Industrial Co. Some Chinese investors have also been diverting funds from commodities into equities due to a local stocks rally, he said. 

• LME Copper 3M Select trades $-169.25 lower to $13206.5 at 8:25:37 AM

• CME HRC Steel last traded at $1155 and $3 higher at 6/30/2026

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