Benchmark three-month aluminium on the London Metal Exchange fell 0.1% to $3,088 a metric ton on Friday, extending a period of downward pressure as traders dialed back geopolitical risk premiums.
The slide reflects growing market confidence that supply chains in the Middle East are stabilizing, removing a key support pillar for industrial metals that had been propped up by fears of regional disruption.
41% to $3,073 a ton, marking the lowest level in four months.
Reuters reported that the market is pricing in an improvement in supplies from the key Gulf region, a shift that has weighed on prices throughout the week.
This development follows a sharp drop earlier in the week, when benchmark contracts fell 0.41% to $3,073 a ton, marking the lowest level in four months.
That decline was driven by a combination of a strengthening US dollar and the broader retreat in risk premiums across commodities as market anxieties over Middle East tensions eased.
The sustained weakness highlights a shift in market sentiment from scarcity-driven pricing to fundamental supply-demand dynamics.