SHANGHAI, Nov. 19 (CBI China) -- Stimulated by export rebate increase on aluminum plate, sheet and strip, aluminum prices rebounded for two straight days, but downstream consumers stayed in sideline instead of "buy up or do not buy" mood as usual. One purchaser said: "The rising aluminum prices will not last long, policy stimulation will soon be absorbed, we will wait for a new round of aluminum prices decline and make purchase then."
CBI believes, due to the rapid decline in alumina and accessories prices, cost pressure on refined aluminum had been greatly eased. Aluminum producers had halted production cut, leaving pressure on aluminum ingot supply unchanged, while the weakening downstream demand will definitely lead to worsen oversupply. Therefore, it is reasonable for the majority of industry insiders to be pessimistic about outlook, leading to prices rebound; downstream consumers still stay on the sidelines.
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