Aluminium prices hit a nearly four-month low on Monday, with concerns about demand weighing heavily on the market. The price of three-month aluminium on the London Metal Exchange fell 1.8% to $2,308.50 per metric ton, marking its lowest level since March 28.
The decline in aluminium prices is part of a broader trend in the base metals market, with prices dropping across the board. Analysts point to a lack of fresh stimulus in China, the world’s largest consumer of metals, as a key factor driving prices down.
Edward Meir, a consultant at Marex, commented on the market struggles, noting that the high prices seen earlier in the year are likely a thing of the past. The recent slide in prices comes despite an unexpected interest rate cut by China’s central bank, highlighting the market’s immunity to traditional stimulus measures.
With the Chinese property market facing challenges, there are growing concerns about the outlook for industrial metals demand. Without further stimulus measures, analysts expect prices for metals like copper to continue to decline in the near term.
In addition to aluminium, other base metals also saw declines on Monday. Copper prices fell 1.4% to $9,183.50 a ton, while zinc, lead, tin, and nickel all experienced losses as well.
The market is closely watching for any signs of policy changes in China that could support industrial metals demand, but for now, the outlook remains uncertain. As prices continue to slide, investors are bracing for further volatility in the base metals market.
