China Aluminum Stocks Return to Growth after Brief Drop, SMM Says

[SMM aluminum alloy flash] The most-traded cast aluminum alloy contract AD2611 opened sharply lower in early trading today, with the futures center quickly dropping to the 23,400 yuan/mt level. It then consolidated at lows and recovered slightly, closing at 23,450 yuan/mt in the morning session, down 385 yuan, or 1.62%, from yesterday's settlement. Demand side, as prices pulled back, downstream purchasing sentiment remained cautious, with most enterprises reporting that clients were mainly taking a wait-and-see approach and making just-in-time procurement.

[Macro rate hike expectations bring periodic pressure, while China's destocking provides solid bottom support] Overall, aluminum prices are expected to be under pressure and consolidate in the short term, with strong support below in the medium and long term, as the market repeatedly contests within a range.

[SMM cast aluminum alloy morning comment: Aluminum alloy futures under pressure, aluminum scrap remains stable-to-firm] Overnight, the most-traded aluminum alloy 2611 contract opened at 23,570 yuan/mt, hit a high of 23,570 yuan/mt and a low of 23,160 yuan/mt, and settled at 23,365 yuan/mt, down 355, or 1.5%.