Primary aluminium inventories fell 32,000 mt on week

[China's Aluminum Inventory Pullback, Multiple Factors in Play, Aluminum Prices Drift Higher] Overall, recently the macro front has improved, the US Fed's near-term hold on rate hikes has eased the marginal constraint on the non-ferrous metals sector, and China's proportion of liquid aluminum continues to rise while aluminum inventory destocking has resumed, together underpinning aluminum prices. However, the continuous rollout of long-term aluminum capacity outside China, weak traditional end-use demand in China during the off-season, and the recent easing of geopolitical tensions in the Middle East are putting some upward pressure on aluminum prices. It is expected that aluminum prices will maintain a trend of consolidating on a strong note.

[SMM Snapshot] SHFE data shows that as of August 5, total registered warrants for cast aluminum alloy stood at 17,374 mt, down 59 mt from the previous trading day. Of this, Shanghai registered 1,506 mt, unchanged; Guangdong registered 1,342 mt, down 88 mt; Jiangsu registered 3,806 mt, unchanged; Zhejiang registered 6,961 mt, up 29 mt; Chongqing registered 2,974 mt, unchanged; and Sichuan registered 785 mt, unchanged.