Aluminium rebounds from 8-month low, copper hits two-week peak

By Polina Devitt

LONDON, Oct 12 (Reuters) - Aluminium prices touched an eight-month low on Monday as a strong dollar pressured sentiment, while copper climbed to its highest in more than two weeks due to worries over mine supply disruptions.

Benchmark three-month aluminium on the London Metal Exchange was up 0.4% at $3,062 a ton by 0938 GMT, having found support at $3,023, its lowest since February 13, earlier in the session.

The dollar hovered near an 18-month high ahead of key US inflation data due later this week that could shape the outlook for interest rates. FRX/

Aluminium prices have fallen 19% since reaching a four-year high in June as concerns over supply disruptions from the Gulf region eased and expectations grew for additional production capacity in Indonesia.

While low visible inventories continue to underpin prices, accelerating supply growth outside China is likely to push the global aluminium market into a surplus of 1.8 million tons in 2027 from a deficit of 941,000 tons this year, Citi said.

Meanwhile, LME copper rose 0.9% to $14,671 a ton after hitting $14,688, its highest since September 25.

Supply concerns were fuelled by a partial suspension at Codelco's El Teniente mine in Chile after a landslide killed two workers on Sunday. A strike at Antofagasta's Centinela copper mine in Chile continued, with negotiations due to resume on Tuesday.

Highlighting tight nearby supply, the premium of LME cash copper over the three-month contract stood at $169 a ton, the highest since late August, compared with a discount of $86 a month ago.

LME zinc fell 1.3% to $3,755 after 7,250 tons were delivered into LME warehouses, lifting stocks to 132,850 tons, the highest since mid-2025.

Nickel added 0.3% to $15,660 after hitting its lowest since late December of $15,500, while lead eased 0.2% to $1,884 and tin gained 1.1% to $53,315.