Aluminum Hits Three-Year High as US-China Truce Buoys Outlook

Group 1 - Aluminum prices have reached their highest level since May 2022, driven by tightening supply in China and an improving demand outlook as trade tensions ease [1][2] - In October, aluminum gained over 7%, marking its best performance in more than a year, as a state-imposed production cap in China is expected to tighten supply while demand in construction and consumer goods sectors rebounds [2] - The recent trade agreement between the US and China has reduced uncertainty for the global economy and the metals market outlook [2] Group 2 - Despite the positive developments, risks remain, particularly with slowing momentum in China's economy, as indicated by a private survey of manufacturing that fell more than expected in October [4] - China's official factory gauge has recorded its longest streak of declines in over nine years, highlighting ongoing challenges in the manufacturing sector [4] - On the London Metal Exchange, aluminum futures settled at $2,902 per metric ton, while other metals showed mixed performance, with copper down 0.3% and zinc up 1.5% [5]