Aluminium markets were cautious this week, with renewed trade concerns between the US and China weighing on sentiment. Financial research firm Kedia Advisory reported aluminium settling down by 0.21 per cent at INR 263.6 (USD 3), reflecting investor unease over global demand trends.
Output caps and trade diplomacy
Markets grew jittery after the US Treasury Secretary Scott Bessent confirmed President Trump’s upcoming meeting with Chinese leader Xi Jinping in late October. The timing adds uncertainty just as China trimmed its base metals output growth target from 5 per cent to 1.5 per cent annually for 2025–2026.
Beijing’s move aligns with its 45 million tonne aluminium production cap, an effort to curb deflationary pressures. This change indicates a tighter supply context but is insufficient to pull weak sentiment in the near term.
