London Metal Exchange (LME) aluminum prices rebounded from a four-month low yesterday (July 2), driven by a weakening US dollar, which made dollar-priced metals more affordable and attractive to investors.
The dollar index faced heavy pressure after US non-farm payrolls grew by only 57,000 last month, missing the forecasted 110,000 increase. This weak employment data led financial markets to lower their expectations for interest rate hikes and redirect attention toward potential rate cuts.
Market growth was capped by developments in the Middle East, a region producing 9% of global aluminum. Progress toward resolving bilateral conflicts involving Washington eased supply disruption anxieties.
Despite the price bounce on July 2, LME aluminum fell nearly 20% over the past month.