LME Aluminum Near $3,700 on Tight Supply, Strong Spot Demand

The LME aluminum Asian Reference Price slipped slightly to $3,591 per ton, reflecting minor regional adjustments despite overall firmness in spot pricing.

SEATTLE (Scrap Monster): Aluminum prices on the London Metal Exchange moved closer to the $3,700-per-ton mark, supported by tightening inventories and a rebound in near-term contracts, signaling renewed strength in the physical market.

Spot aluminum prices posted notable gains, with the cash bid rising to $3,683 per ton and the offer reaching $3,685, reflecting daily increases of over 1%. Short-term momentum was also evident in three-month contracts, where both bid and offer prices edged higher, indicating improved sentiment among traders after recent volatility.

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However, the longer-term outlook appeared less bullish. December 2027 contracts declined by more than 1%, highlighting lingering concerns about future demand and macroeconomic uncertainty. This divergence between short-term strength and long-term caution underscores a market balancing tight supply conditions against broader economic risks.

The LME aluminum Asian Reference Price slipped slightly to $3,591 per ton, reflecting minor regional adjustments despite overall firmness in spot pricing.

Inventory data further reinforced the bullish near-term outlook. Aluminum stocks on the exchange dropped to 378,825 tons, continuing a downward trend that has supported prices in recent sessions.

Meanwhile, alumina prices, tracked by the Platts alumina index, remained largely stable with a marginal dip, suggesting steady upstream cost conditions for aluminum producers.