Aluminium prices came under heavy pressure on Friday, joining the broader rout across the metals complex. MCX aluminium futures slid nearly 6%, hitting the lower circuit, while spot aluminium prices also remained weak amid sharp risk-off sentiment. The decline mirrors losses seen across precious and base metals, with traders rushing to cut exposure after recent volatility.
The sharp fall in aluminium follows aggressive profit booking across commodities after a prolonged rally in metals earlier this year. A stronger US dollar, rising bond yields, and expectations of tighter global financial conditions have weighed on industrial metals. The sell-off in aluminium was further amplified by broad-based liquidation across base metals as market participants reduced leveraged positions amid heightened uncertainty.
Analysts noted that the move appears largely sentiment-driven, tracking weakness in global metals and commodities rather than any immediate aluminium-specific trigger. With volatility elevated, price action across base metals has turned sharply reactive to macro cues.
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