FX.co ★ Aluminum Falls Below $2,400

Aluminum futures have dipped below $2,400 per tonne amidst a backdrop of ample supply and ongoing macroeconomic challenges, overshadowing economic support initiatives from China. Major Chinese aluminum producers have indicated plans to boost their capacity overseas, especially as China's domestic production approaches its ceiling of 45 million tons this year. Adding to this, major smelters in Southeast Asia have reported an increase in alumina supply this year, which has alleviated previous input shortages and consequently reduced production costs. Meanwhile, escalating tariffs between the United States and China have dampened industrial activity prospects in these leading manufacturing hubs. This is reflected in manufacturing PMIs in both countries, which indicate contractions and a decline in export orders.