Macro stagflation concerns combined with weak demand keep aluminum prices consolidating on a subdued note in the short term [SMM Aluminum Morning Meeting Summary]
[Macro Stagflation Concerns and Weak Demand Keep Aluminum Prices Consolidating on a Subdued Note in the Near Term] Macro-wise, elevated US Treasury yields and a strong US dollar continue to weigh on valuations across the nonferrous metals sector, while shifting expectations for US Fed interest rate hikes this year repeatedly disrupt market sentiment. Industry-wise, China's aluminum ingot inventory buildup after the holiday has weakened price support, compounded by softer liquid aluminum demand and a rebound in casting ingot volumes. Position adjustments around the long holiday have intensified the tug-of-war between longs and shorts. Overall, with bullish and bearish factors intertwined in the near term, aluminum prices are expected to remain in the doldrums.