Aluminium prices dropped on Friday, while zinc, nickel, and lead also declined. Investors reacted to reports that US President Donald Trump might ease tariffs on metal imports. Markets priced in the potential change ahead of November’s midterm elections.
The 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 lost 1.76%, closing at 23,195 yuan per tonne.
Broader Pullback Hits Industrial Metals
Zinc traded at $3,316.50 per tonne, down $51.95 or 1.54%. Nickel fell $257 to $16,993.38 per tonne, a decline of 1.49%. Lead dropped $10.30 to $1,972.38 per tonne, down 0.52%.
The declines reflected growing expectations that Washington may relax rules tightening global supply chains. These restrictions have increased production costs for manufacturers worldwide.
White House Reviews Metal Tariffs
A Financial Times report said the White House is reviewing the list of goods affected by steel and aluminium tariffs. Officials may exempt some products, stop further tariff expansions, and focus on more targeted duties. Rising living costs put pressure on policymakers ahead of the midterms.
Trump previously imposed tariffs of up to 50% on imported metals and later extended them to everyday products. The policy pushed US tariffs to the highest levels since before World War II. Economists said the levies increased consumer prices, rather than being absorbed by foreign producers.
Market Expectations Shift on Aluminium
Trump later reduced tariffs on popular food products to limit grocery price inflation. He also declared a truce in the trade conflict with China after Beijing imposed retaliatory tariffs.
Aluminium remains central to packaging, transport, and appliances. Even small daily price movements can influence production costs. Investors now monitor whether US tariff policy may become less restrictive than previously expected.
