LME Aluminum Near $3,700 on Tight Supply, Strong Spot Demand
Aluminum | 2026-04-29 06:33:54
The LME aluminum Asian Reference Price slipped slightly to $3,591 per ton, reflecting minor regional adjustments despite overall firmness in spot pricing.
By Paul Ploumis
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.
POLL
Do you expect aluminum prices to break above $3,700 per ton soon?
Frequently Asked Questions
- Why are aluminum prices rising in the short term?
Prices are being driven by falling inventories, stronger spot demand, and improved sentiment in near-term contracts.
- How are inventories influencing prices?
Declining stock levels on the London Metal Exchange are tightening supply, which supports higher prices.
- What is the role of alumina prices in this trend?
Stable alumina prices, tracked by the Platts alumina index, indicate steady upstream costs, helping sustain current aluminum pricing levels.
