Aluminum prices tumbled to their lowest levels since mid-February, extending a brutal month-long decline that saw the metal lose 16% in June. The downturn accelerated as the US dollar strengthened, creating headwinds across commodity markets and pressuring industrial metals already reeling from geopolitical shifts.

The metal's slide follows its surge earlier this year when supply disruptions from the Middle East conflict drove prices higher. That region accounts for nearly 10% of global aluminum output, so the winding down of hostilities has removed a key support. Traders are unwinding positions as the supply shock fades, leaving aluminum vulnerable to dollar strength and broader risk aversion.

The June decline marked the steepest monthly drop since 2008, signaling how quickly sentiment can shift in commodities markets. With the dollar index hovering near multi-month highs, aluminum faces continued pressure unless supply concerns re-emerge or demand fundamentals improve. The metal's trajectory will likely track broader commodity sentiment in the near term.

For manufacturers and traders, the price drop offers some relief on input costs, though the volatility underscores how geopolitical risks can rapidly reshape commodity pricing dynamics.