Aluminum extends rally to year highs amid tariff easing & supply constraints
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Update time : 2025-11-19 15:19:22
Aluminum prices have strengthened since late October, repeatedly hitting new highs for the year amid volatile trading. The uptrend has been driven by a combination of macroeconomic factors and tightening supply. Aluminum began rising in late October as multiple positive developments emerged.
In October, the U.S. Federal Reserve cut interest rates by 25 basis points to 3.75%-4%, easing global liquidity pressures and improving market sentiment. Meanwhile, China and the United States reached a consensus in tariff negotiations, agreeing to ease trade barriers on certain aluminum products and suspend planned measures, reducing concerns over export restrictions.
At the same time, easing geopolitical tensions in the Middle East helped stabilize energy cost expectations, while overseas supply disruptions, including reduced output in Iceland and potential closures in Australia, added upward pressure. In November, prices continued to climb on tight supply, with transportation limits in Northwest China lowering ingot shipments and arrivals in East China. Analysts noted that while supply constraints support prices, weakening seasonal demand may add to future uncertainty.
