Aluminium’s three-month price dropped by 1.3% at the close of trading after climbing by more than 3% on Wednesday, on news of strike action at Alcoa’s Pinjarra refinery in Australia.
While prices continued to move upward, expectation of a stronger rally in the metal’s price was cut short during afternoon trading because of continued pressure created by global trade tensions.
“To my mind, the [Alcoa] strike was more of a reason for a technical breakout, and provided the impetus to justify it. [Meanwhile] sanctions on Russia overnight put pressure on [aluminium tycoon] Oleg Deripaska, making an amicable outcome [to pricing negotiations] somewhat less likely,” a trader told Metal Bulletin.
Meanwhile, the total LME aluminium inventory was down by 3.4% in...