New Delhi, June 19 -- The US-Iran peace deal to end the West Asia war has eased pressure on aluminium prices as supplies are expected to resume from the region, which accounts for about 9% of global aluminium production capacity.

As of Thursday, spot aluminium prices on the London Metal Exchange (LME) had fallen about 12% from their early-June peak of more than $3,850 per tonne.

Even so, prices remain above pre-war levels and could stay firm as consumers ramp up their stocks in the near term, and due to the structural deficit seen in the medium term.

Supply risks

The easing of geopolitical tensions has removed some of the war-related risk premium from aluminium prices. However, several supply-side factors continue to support the metal...