Key facts
- Aluminium prices have fallen to their lowest point since March.
- A potential US-Iran peace deal framework is expected to boost supply.
- The US-Iran deal may improve delivery prospects from Gulf producers.
- The US-Iran deal could potentially reopen the Strait of Hormuz.
- Weaker-than-expected economic data from China has impacted the metals market.
- Indian aluminium stocks, including Hindalco, NALCO, and Vedanta Aluminium, have dropped.
- Indian aluminium shares fell up to 6%.
Aluminium prices have reached their lowest levels since March, influenced by a confluence of geopolitical and economic developments. A potential US-Iran peace deal framework is anticipated to improve the outlook for aluminium supply. This development is expected to enhance delivery prospects from producers in the Gulf region and could lead to the reopening of the Strait of Hormuz, a critical shipping lane. The prospect of increased supply has contributed to the downward pressure on global aluminium prices.