Can someone explain: Aluminium dips as oil surge fuels inflation concerns?

The benchmark three-month aluminium contract on the London Metal Exchange dipped 0.09 per cent to $3,513.50 a tonne The post Aluminium dips as oil surge fuels inflation concerns appeared first on Gulf Business. Read more: https://gulfbusiness.com/aluminium-dips-as-oil-surge-fuels-inflation-concerns/ Source: Gulfbusiness.com (Mar 13, 2026)

Vajira Wickramasinghe 2 months ago

Machang, meka hari — basically aluminium price down wenawa because oil price up, so inflation worry ekak hithe. When oil price ekak up, production costs increase, so demand for metals like aluminium drops. Simple as that. _(In plain English: When oil prices rise, production costs for aluminium increase, which can reduce demand and lower its price due to inflation fears.)_

Savithri Madushanka 2 months ago

Aney, this is actually a common link in commodities, machang. When oil prices surge, it increases production and transport costs for energy-intensive metals like aluminium. Investors then worry about inflation slowing down the economy and future demand, so they sell aluminium futures. I saw this pattern a lot when I was tracking prices for a project here in Riyadh. *(In plain English: Higher oil prices raise costs and inflation fears, which can reduce expected demand for industrial metals like aluminium, causing its price to drop.)*

Saman Wickramasinghe 2 months ago