On August 3, the LME aluminum price soared to a new high over the past five weeks due to a shortage of alumina, a key raw material of aluminum manufacturing, and a drop in the US dollar.

Alumina inventories in warehouses monitored by the Shanghai Futures Exchange (SHFE) have fallen by 30% in the past three weeks, and alumina futures hit near three-month high on August 20. Alumina prices were supported by limited supply and growing demand.

In addition, the expected cut interest rates from the US Federal Reserve (Fed) in September has pressured the US dollar and led to a drop in the dollar index. Therefore, the dollar-denominated metal became more attractive, triggering a huge buying spree, thereby boosting aluminum prices to soar to a five-week high.