SMM Aluminum Futures: EU-US Sanctions Trigger Market Adjustment, SHFE Aluminum Rebounds Amid Falling Costs

[SMM Aluminum Futures Brief Review: Increased Sanctions by Europe and the US, SHFE Aluminum Bottoms Out and Rebounds]

On the macro front, intensified sanctions by the EU and tariff pressures from the US are expected to lead to structural adjustments in the global aluminum market in the short term, driven by policy impacts. Continuous attention should be paid to the trends in European and US trade policies and changes in demand in major consumer markets.

On the fundamentals side, the pressure of aluminum supply resumption has re-emerged, with domestic aluminum operating capacity in February expected to rise slowly. The average spot price of alumina continues to weaken, dragging aluminum costs further downward. Cost-side support continues to weaken, and as of now, aluminum costs have fallen below 18,000 yuan/mt, while industry profits have exceeded 2,700 yuan/mt.