- Aluminium stocks rise 4% at LME warehouses
- Cautious sentiment prompts price volatility
London Metal Exchange (LME) aluminium prices dropped during Week 31 of CY’25 (28-01 Aug 2025), after hitting a four-month high last week.
LME aluminium prices fell this week, driven by uncertainty surrounding new US tariffs and ongoing economic concerns in China, where manufacturing activity has declined for the fourth straight month. Although demand signals from China have improved and global supply remains tight, trader confidence has been shaken. Price trends remained volatile throughout the week, reflecting broader market caution.
Price performance, inventory trends
LME aluminium prices hovered around $2,600/t in Week 31, marking a 1.8% decrease from Week 30 (21-25 July). Prices opened firm during the start of the week, ranging between $2,630-2,640/t, but gradually prices inched down towards the end of the week, settling around $2,450/t levels.
Meanwhile, aluminium stocks at registered warehouses saw inflows by 4%, to 458,910 t in Week 31 from 443,320 t in Week 30.
Outlook
Ongoing US-China trade talks and China’s infrastructure push offer longer-term support, but short-term volatility persists as traders await clarity on policy outcomes and trade flows.
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