30.10.202517:55:49UTC+00Aluminum Eases from 3-Year High

Aluminum futures in the UK have declined to $2,850 per tonne, down from a peak of $2,900 reached in late October, as the strengthening dollar and uncertain demand temporarily overshadow concerns over reduced output. The Federal Reserve's decision to adjust projections and temper expectations of a rate cut in December led to a dollar rebound, influencing the prices of base metals traded in dollar terms. On the supply side, China has reaffirmed its commitment to curbing overcapacity in metal production, as intense competition among the nation's smelters continues to fuel a deflationary cycle for producers. This aligns with China's existing cap on aluminum production at 45 million tonnes per year, a limit expected to be exceeded later this year. Compounding supply issues, one of the two potlines at the Grundartangi smelter in Iceland has been taken offline due to an electrical equipment failure. Additionally, Alcoa has announced plans to close its Kwinana alumina refinery in Australia, citing the decline in quality of its bauxite ore.