Aluminium prices fell on Friday as zinc, nickel, and lead also declined. Investors reacted to reports that US President Donald Trump may soften tariffs on imported metals. Markets factored in the possible shift ahead of November’s midterm elections.
The three-month aluminium contract on the London Metal Exchange dropped more than 2.5% to $2,965.75 per tonne by midday. The most active contract on the Shanghai Futures Exchange fell 1.76% to 23,195 yuan per tonne.
Industrial Metals Slide Alongside Aluminium
Zinc traded at $3,316.50 per tonne, down $51.95 or 1.54%. Nickel lost $257 to $16,993.38 per tonne, down 1.49%. Lead fell $10.30 to $1,972.38 per tonne, a decline of 0.52%.
The declines reflected expectations that Washington may ease restrictions that have tightened global supply chains. Rising production costs have pressured manufacturers worldwide.
White House Reviews Tariff Strategy
A Financial Times report said the White House is reviewing goods covered by steel and aluminium tariffs. Officials may exempt some products, halt further tariff expansions, and rely on targeted duties. Rising living costs have increased political pressure ahead of the midterm elections.
Trump previously imposed tariffs of up to 50% on imported metals and later extended them to many consumer products. The policy pushed US tariffs to the highest levels since before World War II. Economists say the levies have increased consumer prices rather than being absorbed by foreign producers.
Markets Watch for Policy Changes
Trump later reduced tariffs on popular food products to curb grocery price inflation. He also called a truce in the trade conflict with China after Beijing imposed retaliatory tariffs.
Aluminium is central to packaging, transport, and appliances. Even modest daily price movements can affect production costs. Investors now watch closely for signs that US tariff policy may become less restrictive than previously expected.
