June 9 News:
According to SMM statistics, as of June 9, the inventory of aluminum ingots at major domestic consumption hubs stood at 477,000 mt, a decrease of 27,000 mt from last Thursday and 34,000 mt from the end of May. The core driver of destocking lies in the continued tightness on the supply side. Strategic adjustments by aluminum plants in multiple northern regions and some aluminum smelters in south-west China have led to a MoM decline in casting ingot volumes. Coupled with the consistently low volumes of aluminum in transit and actual arrivals at major consumption hubs, this has collectively resulted in a tight supply of circulating goods. Despite expectations of a slight increase in shipments from north-west China and inter-regional transfers due to price spreads, short-term increases have not yet posed pressure. Meanwhile, the resilience of the consumption side (particularly in east China) has effectively absorbed the relatively low supply. Looking ahead, supported by low arrival volumes in the short term, inventory is expected to maintain a destocking trend. After a rapid breakthrough of the 500,000 mt threshold, close attention will be paid to whether it can successfully refresh the year's low of 440,000 mt, thereby further boosting market sentiment.
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