LME three-month aluminum prices held steady above $2,870/t during Wednesday's session, trading near one-week highs amid a softer dollar and renewed optimism over a potential resolution to the U.S. government funding impasse.
The market structure showed further loosening in nearby tightness, with the cash-to-three-month contango widening to $45/t — its highest level in six months — improving conditions for carrying physical inventory.
In regional markets, U.S. physical premiums for P1020 aluminum have surged toward 19.5–20.0 ¢/lb for 2026 contracts, with T-bar and sow material reaching as high as 21.5 ¢/lb, as buyers anticipate tighter availability ahead of expected tariff extensions.
In China, SHFE aluminum tracked global gains, with the most-active contract closing at ¥21,780/t ($2,870/t, ex-VAT), a fresh one-year high, supported by seasonal restocking and environmental output cuts.
"The widening LME contango and strong Western premiums create a favorable environment for export-oriented mills with internationally certified systems, like our Brilliance window and façade solutions," noted Brilliance Aluminium's International Business Director. "Global clients are increasingly seeking integrated suppliers who can guarantee ISO-compliant quality and on-time delivery for projects such as Egypt's New Capital and Singapore's Corporation Drive development."
Market participants are monitoring whether the contango will attract financing deals and how U.S. trade policy will reshape 2026 aluminum sourcing strategies.
