High Inventory Coupled With Macro Headwinds Led to a Phased Pullback in Global Aluminum Market Risk Premiums [SMM Aluminum Morning Meeting Summary]
[High Inventory Combined With Macro Headwinds Leads to a Phased Pullback in the Global Aluminum Market Risk Premium] Continued destocking in LME inventory provided bottom support for LME aluminum, but tightening liquidity and profit-taking by bulls left insufficient momentum for further gains, and the backwardation structure weakened somewhat. China’s social inventory rose to a seasonal high for the past five years, and the inventory buildup cycle has yet to end. High inventory and weak spot fundamentals jointly suppressed upward momentum. Divergence in domestic and overseas drivers continued, the SHFE/LME price ratio kept weakening, and the market was mainly under pressure in the short term.