FX.co ★ Aluminum Holds at Over 2-Month High

In June, aluminum futures rose above $2,510 per tonne, approaching their highest level since the beginning of the quarter. This uptick reflects the market's ongoing evaluation of global manufacturing demand. In China, retail sales exceeded expectations, indicating that recent economic uncertainties haven't significantly dampened consumer demand, which in turn, limited negative speculation on the Chinese economy. On the supply side, there remains uncertainty surrounding global bauxite supply due to the Guinean government's conflicts with Emirates Global Aluminum regarding mining operations there, potentially endangering mining licenses from one of the world's major suppliers of this essential raw material. Nevertheless, a more pronounced increase in aluminum prices was hampered by an uptick in open inventory levels at the London Metal Exchange, despite the threat of market squeezes linked to the significant positions held by Mercuria.