FX.co ★ Aluminum Rebounds from 8-Month Low

Aluminum futures increased to $2,440 per tonne, continuing the recovery from the eight-month low of $2,340 recorded on April 9th. This aligns with the resurgence seen in various other base metals during the period, as diminished fears of a US recession eased global concerns regarding manufacturing activity. President Trump postponed the implementation of his stringent reciprocal tariffs and suggested forthcoming trade agreements, alleviating worries that escalating trade barriers could suppress global metal purchasing. Nonetheless, concerns about excess capacity from Chinese factories have resulted in a 5% decline in futures this year. Chinese smelters indicated plans to expand their capacity abroad, as mainland China is expected to reach its production ceiling of 45 million tons this year, compelling smelters to seek overseas expansion. Additionally, leading aluminum producers in Southeast Asia highlighted that the increased alumina supply this year is set to reduce production costs.