Magnitude 7 Metals to Restart Missouri Smelter, Boosting US Aluminium Production by 20%

[SMM Secondary Aluminum Alloy Flash] This week, China's social inventory of secondary aluminum alloy ingots fell 6,100 mt WoW to 44,300 mt, marking the fifth consecutive week of destocking, with the destocking speed accelerating WoW. Tight tax invoices and restricted procurement of compliant aluminum scrap continued to constrain enterprise production, keeping new warehouse inflows at a low level. Meanwhile, order deliveries and the recent widening of spot-futures price spreads boosted manufacturers' repurchase demand, driving inventories down further. It is expected that in the short term, affected by tight aluminum scrap supply, secondary aluminum enterprises will struggle to significantly ramp up operating rates, and social inventory will remain low.

Aluminum futures pulled back from yesterday's morning session. Today, trading sentiment in the central China spot market slightly recovered, with downstream processing enterprises exhibiting the sentiment of rushing to buy amid continuous price rise and holding back amid price downturn. The rebound in absolute prices also boosted suppliers' willingness to sell, and overall market trading volume increased MoM. Ultimately, the actual transaction price range in the central China market was around a discount of 40-60 yuan/mt against the SHFE aluminum July contract.