Aluminum Stocks Grow Sharply in China Major Markets, SMM Says

On July 24 local time, in response to the latest US tariff measures, the Association of German Chambers of Commerce and Industry and the German Wholesale and Foreign Trade Association each issued statements, criticizing the frequent changes in US tariff policies, which create greater uncertainty for enterprise operations and investment. Treier Volker, director of foreign trade at the Association of German Chambers of Commerce and Industry, pointed out that the US is attempting to revive tariff measures previously blocked by courts on new legal grounds. Such constant policy shifts not only increase the administrative burden on enterprises, but also heighten legal risks, making it difficult for enterprises to operate in a stable and predictable environment. He stressed that US tariff measures that violate WTO rules must be abolished entirely, especially the additional tariffs still in effect on steel and aluminum products.

[SMM Aluminum Flash] China's daily inventory of secondary aluminum ingots in key consuming regions stood at 8,818 mt today, down 171 mt from the previous trading day, with Foshan destocking by 144 mt and Ningbo destocking by 27 mt.

[End-Use Demand Weakness Limits Rise, Aluminum Price Consolidation Pattern Continues] Our comprehensive outlook indicates that recent macro sentiment has improved slightly, with the persistent Middle East geopolitical risk premium and continued destocking of aluminum ingots in China jointly underpinning aluminum prices. However, long-term capacity additions in aluminum production outside China, weak traditional end-use demand in China, and recurring uncertainty at the macro level are creating significant pressure on the upside room for aluminum prices, which are expected to maintain a fluctuating trend in the short term.