Aluminium billet inventories shrank 3,900 mt to 232,900 mt

[Expectations for US Fed rate hikes intensify; destocking validates consumption resilience, aluminum prices consolidate on a subdued note] On the macro front, rising expectations for US Fed rate hikes, a strong US dollar, and elevated US Treasury yields continue to weigh on valuations of nonferrous metals. On the fundamentals side, production resumptions and new capacity ramp-ups outside China continue to suppress near-term futures sentiment. Aluminum prices are expected to consolidate on a subdued note in the short term.

[SMM cast aluminum alloy morning comment: Price spread between A00 aluminum and aluminum scrap narrowed during the week, while the decline in social inventory of aluminum alloy widened] ADC12 market quotes generally weakened on Thursday, with the SMM ADC12 price falling by 200 yuan/mt from the previous day to 24,300 yuan/mt. The current weakness in aluminum prices has fueled bearish sentiment in the market, while downstream order improvements remain limited, leaving spot prices with insufficient upward momentum. However, relatively firm aluminum scrap prices, tight supply of compliant raw materials, coupled with continued destocking of social inventory and limited import replenishment, still provide some support to prices. Going forward, close attention should be paid to the trends in aluminum and aluminum scrap prices, changes in market sentiment, as well as improvements in downstream orders and procurement demand.

India’s copper exports more than double in April-August; aluminium shipments rise 15.5%