SMM Aluminum Futures Drop: US Economic Slowdown Signs, Weak Cost Support

[SMM Aluminum Futures Brief Review: International Situation in Turmoil, SHFE Aluminum Continues to Plunge]

Macro side, market surveys indicate that signs of a slowdown in US economic growth have become increasingly evident. According to S&P Global, the expansion rate of US business activity in February fell to its lowest level since September 2023, reflecting cautious sentiment among businesses regarding the economic outlook. Fundamentals side, cost side support continued to weaken; supply side remained stable with slight increases, overall changes were relatively small; demand side, influenced by the rise in aluminum prices, end-user enterprises adopted a wait-and-see approach, while shipments from downstream aluminum semis enterprises showed no improvement. The turnover days of raw material inventories at factories struggled to rebound, with restocking mainly based on rigid demand and consumption of finished product inventories.