Primary aluminium inventories extend gains as arrivals remain high

[SHFE aluminum pulls back while LME aluminum stabilizes slightly; aluminum market tug-of-war between longs and shorts continues sideways trend] Macro-wise, expectations for US dollar rate hikes have cooled, but the dollar remains elevated, continuing to weigh on valuations across the nonferrous metals sector. Industry-wise, the improvement in actual demand during China's traditional peak season has not fully met prior expectations, and downstream purchasing has turned more cautious amid high prices, weakening price support. On Monday, social inventory of aluminum ingots saw destocking of 35,000 mt, providing some price support. Overall, bullish and bearish factors are intertwined for aluminum prices in the short term, and prices are expected to consolidate in a sideways range.

[SMM cast aluminum alloy morning comment: Strong cost support but insufficient demand follow-up, short-term sideways movement] On the import side, overseas ADC12 offers held steady in the $3,060-3,160/mt range. As domestic prices moved higher, import real-time profit and loss rebounded to a positive profit zone. Attention should be paid to the replenishment of imported supply going forward.