SMM SHFE Aluminum Review: Supply Stabilization and Dollar Weakness Lead to Minor Fluctuations

[SMM SHFE Aluminum Brief Review: Reduced Supply-Side Disruptions, SHFE Aluminum Slightly Fluctuates]

Macro side, on January 20, Trump officially took office and announced that no new tariffs would be imposed immediately. Affected by the news, the US dollar index touched a low of 108.27, boosting base metals.

Fundamentals side, supply-side disruptions decreased due to sufficient supply, and the cost side of the aluminum industry loosened significantly. As of yesterday, the immediate full average cost of domestic aluminum fell back to around 19,000 yuan. Specifically, alumina costs accelerated downward over the past week, and the market's purchase willingness for high-priced alumina decreased. It is expected that spot alumina prices will continue to pull back, weakening cost support for aluminum.