Rising Prices of Aluminum, Copper, and Most Industrial Metals Amid Optimism for Ending Government Shutdown

SadaNews - Prices of aluminum, along with copper and most other industrial metals, have risen as hopes increase for an end to the ongoing U.S. government shutdown that has persisted for weeks.

A group of moderate Democratic senators has backed an agreement to reopen the government, according to sources familiar with the matter.

This development has boosted risk appetite in the markets on Monday, with aluminum prices rising by 1.1% to $2,879.50 per ton at 11:22 AM Shanghai time.

End of the Longest U.S. Government Shutdown

Resuming government operations would end the longest federal shutdown in U.S. history, which has cast a negative shadow over the prospects of the U.S. economy.

Most metal prices fell over the past week amid increasing uncertainty regarding the Federal Reserve's next move on interest rate cuts.

Aluminum, which reached a three-year high a week ago, has been one of the best-performing metals on the London Metal Exchange in recent months, as investors assess the impact of production capacity constraints in China amid continued strong demand.

Aluminum Price Forecasts

Jinrui Futures wrote in a research note that aluminum prices may remain elevated in the short term, supported by the prevailing optimism among fund investors. The firm added that high profit margins for aluminum producers could limit any further price increases.

In the copper market, traders are once again paying high premiums to secure shipments heading to the United States, indicating the return of tariff-related bets that drove prices up significantly earlier this year.

Trump's Copper Tariff Plans

The Trump administration is set to reconsider plans to impose tariffs on refined copper over the next year. Copper prices rose by 0.8% on the London Metal Exchange to $10,798 per ton, and increased by 1.5% on the COMEX to $5.031 per pound.

Futures contracts for iron ore in Singapore fell by 0.4% to $100.85 per ton.

The proposed agreement in Congress calls for reopening the government and funding certain ministries and agencies until January 30. Both the Senate and House of Representatives still need to pass the bill, but President Donald Trump stated that the end of the shutdown "is getting closer and closer."