Aluminium prices rose on Friday, with the London contract set for its biggest weekly gain since mid-April on tight raw material supply and hopes of a U.S. rate cut next month.

Three-month aluminium on the London Metal Exchange (LME) was up 0.7% at $2,496.50 per metric ton by 0709 GMT.

The most-traded October aluminium contract on the Shanghai Futures Exchange (SHFE) closed down 0.1% at 19,795 yuan ($2,774.16) a ton.

On a weekly basis, LME aluminium was up 5.5%. SHFE aluminium posted the best week since the week of May 27, up 2.5%.

U.S. Federal Reserve policymakers on Thursday lined up in support of starting interest rate cuts next month. Fed Chair Jerome Powell is due to speak later on Friday.

Lower interest rates could soften the dollar and make greenback-priced metals cheaper to holders of other currencies.

Tight supply of alumina and bauxite have also underpinned aluminium prices, which hit a more than six-week high of $2,531 a ton on the LME on Thursday.

Aluminium prices might rise further if the alumina and bauxite markets remained tight, said a trader.

The discount of LME cash aluminium to the three-month contract tightened to $17.08 a ton, the smallest discount since May 1.

Even though the aluminium spread on the LME has become tighter, there is no shortage of aluminium, the trader said.

LME aluminium inventory fell to its lowest since May 8 to 877,950 tons, but the current level is still 65% higher than the same time last year.

In top consumer China, SHFE aluminium inventories were at the highest since March 2023.

LME copper rose 0.8% to $9,200 a ton, nickel climbed 1% to $16,765, zinc advanced 1.3% to $2,895, lead increased 1.6% to $2,085 and tin was up 1.2% at $32,710.

SHFE copper eased 0.7% to 73,500 yuan a ton, lead shed 0.7% to 17,420 yuan, while nickel rose 0.4% to 130,720 yuan, zinc climbed 1.5% to 24,000 yuan and tin advanced 0.5% to 267,570 yuan.

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(Reporting by Mai Nguyen in Hanoi; Editing by Subhranshu Sahu and Rashmi Aich)