Primary aluminium inventories extended decline by 35,000 mt on week

[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.

Local time, U.S. President Trump ordered a halt to the airstrikes on Iran, bringing an end to the daily strikes that had lasted for two weeks. According to two people familiar with the matter, Trump's move was intended to create more room for diplomatic negotiations, and he believed that, without the need to resume large-scale military operations, the current airstrikes had essentially reached the limit of their effectiveness. Notably, hours before Trump issued the ceasefire order, an Omani delegation had arrived in Tehran, the capital of Iran, to hold consultations on the reopening of the Strait of Hormuz.

The flash US S&P Global manufacturing PMI unexpectedly fell to 53.8 in July, the lowest since March, while market expectations were for a rise to 54.3. In contrast, the flash services PMI came in at 53.6, an eight-month high, lifting the flash composite PMI to 53.6, also an eight-month high, with both readings significantly exceeding market expectations.