FX.co ★ Aluminum Slumps to 8-Month Low

In April, aluminum futures dropped to $2,320 per tonne, marking their lowest level in eight months. This decline aligns with significant decreases in base metal prices across global marketplaces, spurred by the ongoing trade conflict between the US and China, which has dampened manufacturing demand forecasts for these major global economies. In response to the US administration's decision to increase tariffs to 104%, China announced a corresponding increase in tariffs on US goods to 84%. Additionally, Beijing intensified its stance by adding 12 companies to its export restriction list, further straining economic exchanges between these two leading economies. These manufacturing growth concerns were significant enough to overshadow supply worries in the US, which were anticipated due to prior aluminum tariffs imposed under the Trump administration, likely causing domestic capacity challenges. Concurrently, China's supply is expected to slow, as production is nearing the government-mandated cap of 45 million tons, intended to support carbon emission reduction efforts.