LME aluminum price supported by weak US dollar & China’s housing policy
On Tuesday, benchmark aluminum on the London Metal Exchange (LME) rose by 1.5% to US$2,179/ton. The price hit a new high at US$2,191/ton on June 28.
The increase was mainly due to the US dollar declining to a two-month low, China’s strong automobile sales, and the government’s policies to support the real estate industry.
When the dollar weakens, metals priced in dollars are more attractive to buyers holding other currencies.
China’s overall consumption hasn’t been boosted, but the government’s policy to support the real estate market will give base metals support to some extent.
