Metals: Aluminium rebounds from losses as dollar slides on weak US jobs data

Norsk Hydro ASA

02/07/2026 11:18

Updates prices
By Eric Onstad

    LONDON, July 2 (Reuters) - Aluminium prices rebounded from their lowest level in more than four months on Thursday as weaker-than-expected U.S. jobs data dampened expectations of interest rate hikes and pressured the dollar.
Benchmark three-month aluminium CMAL3 on the London Metal Exchange was up 0.6% at $3,094 a metric ton at 1600 GMT, following three straight sessions of losses. It fell to $3,040 earlier in the session, its lowest since February 19.
The dollar index =USD tumbled after U.S. nonfarm payrolls increased by 57,000 jobs last month, nearly half of the expected rise of 110,000, prompting financial markets to dial back expectations for a near-term interest rate hike. FRX/
A softer dollar makes commodities priced in the U.S. currency cheaper for buyers holding other currencies. 
"Today's jobs data has shifted the focus back to Fed rate cuts, providing a tailwind for metals," said Ewa Manthey, commodities strategist at ING. 
"The key question now is whether upcoming data continues to point to a cooling U.S. economy, which would likely keep the dollar under pressure and remain supportive for metals."
Despite the bounce, LME aluminium is still down nearly 20% over the past month as the U.S. and Iran moved closer to ending their conflict, easing fears of supply losses from the region. The Middle East accounts for about 9% of global aluminium production.
Emirates Global Aluminium said it would restore production sooner than expected at its damaged Al Taweelah complex - one of the world's largest aluminium production sites.
The looser supply situation was also impacting aluminium spreads and regional premiums, Standard Chartered Bank analyst Sudakshina Unnikrishnan noted.
The cash LME aluminium contract was at a discount of $9.80 per ton to the three-month futures CMAL0-3, compared to a premium of $105 on June 1.
LME copper CMCU3 rose 0.2% to $13,324 a ton, lead CMPB3 added 0.5% to $1,874 while zinc CMZN3 lost 0.4% to $3,485.50, nickel CMNI3 slipped 0.3% to $16,305 and tin CMSN3 dropped 1% to $51,120 a ton. 

 (Reporting by Eric Onstad, additional reporting by Solomon Cefai in Singapore; Editing by Harikrishnan Nair, Diti Pujara, Elaine Hardcastle)
 ((eric.onstad@thomsonreuters.com; +44 20 7513 4037; Twitter https://twitter.com/reutersEricO; Reuters Messaging: eric.onstad.thomsonreuters.com@reuters.net/))