Aluminium prices fell on Friday as other industrial metals, including zinc, nickel, and lead, also declined. Investors reacted to reports that US President Donald Trump may ease tariffs on metal products. Markets priced in a potential shift ahead of November’s midterm elections.
The three-month aluminium contract on the London Metal Exchange dropped over 2.5% to $2,965.75 per tonne by midday. Meanwhile, the most active contract on the Shanghai Futures Exchange fell 1.76% to 23,195 yuan per tonne.
Industrial Metals Follow Aluminium Down
Zinc traded at $3,316.50 per tonne, down $51.95 or 1.54%. Nickel fell $257 to $16,993.38 per tonne, a decline of 1.49%. Lead fell $10.30 to $1,972.38 per tonne, a drop of 0.52%.
Traders expect Washington may loosen rules that have tightened global supply chains. Those restrictions have raised costs for manufacturers and affected industrial production worldwide.
White House Considers Tariff Adjustments
A Financial Times report says the White House is reviewing the list of goods affected by steel and aluminium tariffs. Officials may exempt some products, halt further tariff expansions, and focus on targeted duties. Rising living costs put pressure on the administration ahead of the midterm elections.
Trump previously imposed tariffs of up to 50% on imported metals and extended them to everyday products. The policy pushed US tariffs to the highest levels since before World War II. Economists say the tariffs raised consumer prices, contrary to claims that foreign producers would bear the cost.
Tariff Changes Aim to Ease Inflation
Trump later reduced tariffs on popular food products to curb grocery price inflation. He also agreed to a truce in the trade conflict with China after Beijing imposed retaliatory tariffs.
Aluminium is vital for packaging, transport, and household appliances. Even small daily price swings can influence production costs. Investors now weigh whether US tariff policy may become less restrictive than expected.
