Aluminium falls on slowdown fears from US tariffs

Aluminium prices fell on Monday, on concerns that potential U.S. tariffs on Chinese goods could slow global economic growth and dent metals demand.

Three-month aluminium on the London Metal Exchange (LME) fell 0.4% to $2,578 per metric ton by 0451 GMT. The most-traded July aluminium contract on the Shanghai Futures Exchange (SHFE) fell 0.7% to 20,905 yuan ($2,880.14) a ton.

The United States is considering more tariffs on Chinese goods to eliminate trade policies Washington has called unfair. This has raised fears of a trade war that could hurt global growth.

A firmer dollar also weighed on metals prices, making the greenback-priced commodities more expensive to holders of other currencies.

Data showed LME-registered warehouse inventories of aluminium rose to a two-year high of 1.28 million tons, pointing to weak demand. SHFE aluminium inventories, although down from a March peak, were still higher than the same time last year. Weak metal demand has impacted various applications of aluminum across industries.

Other metals also recorded declines. On the LME, copper was down 0.5%, nickel shed 0.2%, zinc eased 0.5%, lead fell 0.2% and tin lost 0.7%. On the SHFE, copper was down 0.8%, nickel shed 1.2%, zinc eased 1.1%, lead fell 0.4% and tin lost 1.6%.

Source: Investing.com