Aluminium prices declined on Friday as other industrial metals also weakened. Investors reacted to reports that US President Donald Trump could ease some tariffs on metal products. Markets assessed the potential policy shift ahead of the November midterm elections.
The benchmark three-month aluminium contract on the London Metal Exchange fell more than 2.5% to $2,965.75 per tonne by midday. The most active contract on the Shanghai Futures Exchange dropped 1.76% to 23,195 yuan per tonne.
Zinc, Nickel, and Lead Also Move Lower
Several core industrial metals recorded losses during the session. Zinc traded at $3,316.50 per tonne, down $51.95 or 1.54%. Nickel traded at $16,993.38 per tonne, down $257 or 1.49%. Lead traded at $1,972.38 per tonne, down $10.30 or 0.52%.
The decline reflected expectations that Washington could loosen restrictions that tightened global supply chains. Those restrictions have increased costs for manufacturers across multiple sectors.
White House Reviews Tariff List
A Financial Times report said the White House is reviewing goods covered by steel and aluminium tariffs. Officials may exempt certain products, stop further tariff expansions, and rely on more targeted duties instead. The administration aims to address voter dissatisfaction over rising living costs ahead of the midterms.
Trump imposed duties of up to 50% on imported metals last summer and later extended them to many everyday products. The policy pushed US tariffs to their highest levels since before the Second World War. Economists said the levies passed through to consumer prices and undermined claims that foreign producers would absorb the costs.
Tariffs and Inflation Shape Political Strategy
Trump later scaled back tariffs on popular food products to curb grocery price inflation. He also called a truce in the trade war with China after Beijing imposed retaliatory tariffs.
Aluminium plays a central role in packaging, transport, and household appliances. Even small daily price moves can influence expectations for input costs. Investors now consider whether US tariff policy may become less restrictive than previously feared.
