Primary aluminium inventories extended gains by 103,000 mt on week

[SMM Aluminum Flash] China's inventory of secondary aluminum alloy ingots in major consuming regions stood at 8,981 mt today, up 479 mt from the previous day, with the pace of inventory buildup accelerating. By region, Foshan saw an inventory buildup of 346 mt, and Ningbo saw an inventory buildup of 104 mt.

[SMM Cast Aluminum Alloy Morning Comment: Futures Pullback Weighs on Spot; Cost Support Limits Downside Room] Yesterday, aluminum alloy market quotes were broadly lower, with the SMM ADC12 price lowered by 200 yuan/mt. The futures pullback further dampened spot market sentiment, and enterprises generally followed by lowering their quotes. The downstream sector is still in a demand off-season, with some enterprises still on high-temperature holidays or operating at reduced loads. End-user orders and procurement demand are weak, and the spot market lacks sustained upward momentum. However, the cost side still provides some support, as aluminum scrap prices remain relatively high overall and enterprises have limited room to cut prices further. The market lacks demand drivers on the upside, while the downside is constrained by costs. In the short term, ADC12 prices are expected to continue to consolidate within a range.