- LME aluminium prices decline for 4th week
- Easing Middle East tensions weigh on prices
LME aluminium prices declined w-o-w on 26 June 2026 for the fourth straight week after the recent sharp rally, as profit-booking and cautious physical buying weighed on market sentiment. However, lower exchange inventories, tight nearby availability, and ongoing Middle East tensions limited sharper downside pressure. LME three-month aluminium prices settled at $3,232/t in the week ended 26 June 2026, down by 5% from $3,405/t in the previous week.
Aluminium prices opened the week near $3,406/t, declined to a mid-week low of around $3,146/t, before recovering to approximately $3,180/t and stabilising towards the weekend.
Meanwhile, LME aluminium inventories declined by 2.2% w-o-w to 310,140 t from 325,090 t, indicating continued tightness in visible exchange stocks.
LME aluminium prices declined w-o-w as easing geopolitical tensions in the Middle East reduced the supply risk premium that had supported prices in recent weeks. Improving expectations for aluminium shipments from key Gulf producers, coupled with a stronger US dollar, weighed on investor sentiment and triggered profit-booking, pushing the three-month contract to its lowest level in nearly three months.
Outlook
LME aluminium prices are likely to remain under pressure in the coming week as improving supply from the Middle East and a stronger US dollar continue to weigh on sentiment. However, declining LME inventories and tight physical availability are expected to limit further downside.
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