The market is optimistic over demand in view of the production reduction in Yunnan, faster recovery speed of downstream demand as well as the approaching peak season. However, the current supply is still ample as the optimism has not paid off yet. This slowed the narrowing of spot discounts.
According to the SMM survey, cargoes en route decreased, and the proportion of aluminium liquid in February increased by 3.5% month-on-month to 62.7%. Therefore, it is expected that the probability of inventory accumulation will be minimal.
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