A23LONDON- Aluminum prices rose on Friday to their highest level in eight weeks as strong economic data from top metals consumer China attracted momentum-following funds and set aside uncertainty over potential US trade tariffs.
Three-month aluminum on the London Metal Exchange (LME) was up 1.9 percent at $2,684 per metric ton after hitting $2,692, its highest since Nov. 20.
China’s economy grew 5 percent last year, matching the government’s target, but growth was unbalanced, led by industry and exports. The 2025 outlook for China remains uncertain with potential tariffs from the new administration in the US after President-elect Donald Trump takes office on Monday.
The upper trend in aluminum attracted buying from Commodity Trading Advisors (CTAs), funds that use computer models to track momentum, said a metals trader.
Aluminum has also been supported this week by concerns about tightening supply to the European Union if the bloc bans imports from Russia.
In a sign of concern about nearby supplies, the discount for the LME cash against the three-month aluminum contract narrowed to $10.4, lowest since October, compared with $43 a month ago.