Aluminum prices edged higher on Thursday, supported by positive industrial data from China, Europe, and the United States, although prices remained under pressure from weaker investor risk appetite and growing expectations of a recovery in global supply following the easing of US-Iran tensions.

Reuters reported that the benchmark three-month aluminum contract on the London Metal Exchange rose 0.59% to $3,094 per metric ton, following two weeks of sharp price volatility.

The gain was supported by a series of manufacturing activity indicators in China, Europe, and the United States, which showed that the industrial sector remained resilient despite higher production costs. This is a positive factor for aluminum, which is widely used in transportation, packaging, and construction.

Copper prices also remained largely stable, as the White House did not issue a widely anticipated June update on tariffs.

Supply pressures and geopolitical concerns limit market gains

Earlier in the day, however, aluminum prices remained under pressure, touching their lowest levels in more than four months as investor risk appetite weakened and signs emerged of a faster-than-expected recovery in global supply following the end of the US-Iran trade war.

The benchmark three-month aluminum contract on the London Metal Exchange fell 0.8% to $3,053 per metric ton by 09:30 GMT, recording a fourth consecutive session of losses after earlier touching $3,040 per ton, its lowest level since February 19.

LME aluminum has lost around 20% of its value over the past month, as the United States and Iran moved closer to ending their dispute, strengthening expectations that supply will return to markets at a faster pace.

The most-traded aluminum contract on the Shanghai Futures Exchange also fell 0.4% to 22,400 yuan per ton.

Losses extended to most metals traded on the London Metal Exchange, amid weaker investor risk appetite and a decline in Asian equities ahead of US jobs data, which investors are watching for clues about the future path of US monetary policy.