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01.10.202608:47:56UTC+00Aluminum Drops to Near 3-Month Low

Aluminum futures in the UK declined to around $3,120 per tonne, their lowest level since early July, pressured by a stronger US dollar and expectations of improving supply. The greenback extended its gains as persistent inflation concerns reinforced expectations of tighter Federal Reserve policy. A firmer US currency typically dampens demand for dollar-denominated commodities by making them more expensive for buyers using other currencies.

On the supply side, several smelters are preparing to restart previously idled production capacity, while others are expanding and upgrading their facilities, fueling expectations of a gradual recovery in global output. In addition, rising Chinese exports are helping offset production losses in the Persian Gulf. Chinese shipments rose 17.2% year-on-year in August, as subdued domestic demand and elevated inventories enabled more metal to be redirected to overseas markets.

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