SMM Aluminum Morning Meeting Recap: Central Bank Policies & Aluminum Market Dynamics

[SMM Aluminum Morning Meeting Summary: Central Bank Indicates Timely RRR Cuts and Interest Rate Cuts, Focus on End-Use Demand Release]

Macro side, the central bank held a meeting and stated that it would implement a moderately loose monetary policy and carry out RRR cuts and interest rate cuts at an appropriate time. Fundamentals side, on the supply side, domestic aluminum production resumption continues to advance; with spot prices of alumina, petroleum coke, and other raw and auxiliary materials fluctuating downward, cost side support for aluminum continues to weaken. During the week, aluminum ingot social inventory continued destocking, coupled with a sustained rebound in the operating rates of aluminum processing enterprises, providing some support on the consumption side. However, aluminum prices fluctuating at highs suppressed downstream purchase willingness, resulting in insufficient momentum for operating rate growth in some enterprises, while spot premiums in various regions were constrained. It is expected that aluminum prices will hover at highs in the near term, with short-term attention focused on changes in US tariff policies and the actual release of downstream demand.