METALS-Aluminium hits near two-week low on Ukraine talks
By Eric Onstad
LONDON, Aug 19 (Reuters) - Aluminium prices slid to their weakest level in nearly two weeks on Tuesday on the prospect of an end to the Ukraine war that might allow major producer Russia to boost supply.
Benchmark three-month aluminium CMAL3 on the London Metal Exchange fell 1% to $2,562 a metric ton by 1610 GMT, its lowest since August 6.
Aluminium prices have slid for three sessions including Friday, when U.S. President Donald Trump met his Russian counterpart Vladimir Putin in an effort to broker an end to the war in Ukraine.
When Trump met Ukraine's President Volodymyr Zelenskiy on Monday, they both raised the prospect of three-way talks with Putin.
"Aluminium is leading the index lower this week and that could be part of the so-called peace dividend. Negative price action due to the prospect for increased supply," said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
The LME has banned metal produced in Russia after mid-April 2024 from its warehousing system to comply with U.S. and British sanctions imposed over Moscow's 2022 invasion of Ukraine, and many companies have declined to use Russian material.
"Aluminium has been on an uptrend since April, and it looks like today we're just dipping below that. So, I would imagine we're also seeing some technical selling below $2,580," Hansen added.
LME aluminium has rebounded 12% since touching an eight-month low of $2,300 in April.
Weighing on the metals complex was a slightly firmer dollar index .DXY as investors awaited policy cues from the annual Federal Reserve symposium in Jackson Hole later this week.
A stronger dollar makes commodities priced in the U.S. currency more expensive for buyers using other currencies.
Among other metals, LME copper CMCU3 eased 0.4% to $9,693.50 a ton, nickel CMNI3 shed 0.8% to $15,030 and zinc CMZN3 fell 0.3% to $2,768.50, while lead CMPB3 edged up 0.1% to $1,973.50 and tin CMSN3 added 0.4% to $33,825.
For the top stories in metals, click TOP/MTL
Related Articles
[Reuters Analysis] Powell's last Jackson Hole speech could pack a punch: McGeever
By Jamie McGeever ORLANDO, Florida, Aug 20 (Reuters) - Financial markets are taking in a collective breath ahead of Jerome Powell's eighth and final keynote Jackson Hole speech as Federal Reserve Chair. If the moves following his last seven are any guide, investors buckle up for a bumpy ride....
Powell's Jackson Hole Speech: For U.S. Stocks, Hawk or Dove Signal Could Be a Lose-Lose?
TradingKey - As U.S. inflation and labor market data show signs of rebalancing, Treasury traders and Wall Street banks have largely priced in a rate cut at the September FOMC meeting — the first of 2025. Yet both a more dovish-than-expected tone and a potential surprise hawkish signal from Fed Chair
Eurozone Q2 GDP Commentary: Will the Euro's Upward Momentum Persist?
TradingKey - On 14 August 2025, Eurostat published Q2 GDP figures, revealing a drop in the Eurozone's quarter-on-quarter growth from 0.6% in the first quarter to 0.1%. Consequently, annual growth eased from 1.5% to 1.4%. The slowdown primarily stems from the diminishing boost from European...
Ethereum Price Prediction: Will ETH Extend the Rally? What’s the Future Trend?
Ethereum's impressive 2025 rally has been largely fueled by inflows from spot ETFs and a surge in institutional holdings, signaling growing confidence in its role as a core asset in the crypto market. However, to officially confirm the start of a new bull cycle, ETH must break above the critical $4,
Bitcoin Price Forecast: Trends and Investment Outlook from 2025 to 2030
From $0.01 in 2009 to $120,000+ in 2025, Bitcoin has evolved from obscurity to a globally recognized financial asset. While institutions and governments increasingly embrace it, investors must remain vigilant against volatility, security risks, and scams.
