China's Secondary Aluminum Alloy Ingots Inventory Drops by 105 mt

[Aluminum Divergence Consolidation Recovery Inside and Outside China; Middle East Tensions Ease, Disturbing Aluminum Price Risk Premium] Overall, recent improvement on the macro front, interest rate hike expectations remaining on hold and easing the marginal constraints on the nonferrous metals sector, along with the continued rise in the proportion of liquid aluminum in China, have supported aluminum prices. However, the continued rollout of long-term aluminum capacity outside China, weak traditional end-use demand in China during the traditional off-season, and disturbances from Middle East geopolitical uncertainties are expected to result in aluminum prices consolidating on a strong note.

The US Department of Commerce published a notice in the Federal Register soliciting public comments on including 14 additional derivative products within the scope of the Section 232 tariffs on steel, aluminum and copper. The products proposed for inclusion include aluminum powder, welder parts and tank semi-trailers. Previously, although the US had adjusted the scope of the metal tariffs, it still maintained a 50% tariff rate.

[SMM Cast Aluminum Alloy Morning Comment: Night Session Retreats After Rapid Rise, Closes Lower; Firm Aluminum Scrap Prices, Downstream High-Temperature Holidays Weigh on Orders] On Tuesday, the SMM ADC12 price rebounded by 100 yuan/mt, mainly driven by a rebound in aluminum prices and strengthened cost support. However, improvement in market demand is not yet evident. Some downstream enterprises are gradually entering high-temperature holidays, leading to weak order performance, and purchases remain primarily for immediate needs.