Aluminum futures in the UK rose above $3,100 per tonne, rebounding from a more than four-month low as the US dollar retreated, improving the appeal of dollar-denominated commodities.
Softer US jobs data reduced expectations of a near-term rate hike, pushing the greenback to a two-week low.
In addition, factory activity in China, one of the largest consumers of the metal, returned to expansion in June, supporting the demand outlook.
However, price gains remained limited by improving supply prospects.
The resumption of trade through the Strait of Hormuz following a US–Iran deal has increased the likelihood of additional supplies from the Persian Gulf, a region that accounts for nearly a tenth of global aluminum output.
At the same time, production continued to rise in China, the world’s largest producer, while output from Indonesian smelters also expanded.