[SMM Midday Review of Spot Aluminum: Fundamentals-Driven Destocking Provides Support for Premiums, Downstream Purchasing as Needed] Inventory side, according to SMM's domestic aluminum ingot inventory data, the three-region inventory of domestic aluminum ingots stood at 447,000 mt on May 21, with a destocking of 10,500 mt compared to the previous day. In the short term, the relatively low arrival of goods in east China is conducive to the rise in premiums and discounts, and attention should be paid to the changes in demand in the following days.

[SMM Aluminum Morning Meeting Summary: Policy Easing Signals Boost Market Confidence, US Dollar Weakens, Overnight Aluminum Futures Rise Slightly] Macro perspective, dragged down by the US Fed's cautious stance on the economy, the US dollar fell again on Tuesday; China released signals of monetary policy easing, improving market expectations and stimulating economic growth and investment and consumption demand. Fundamentals side, there were relatively small changes in the short-term supply side; cost side, the specific impact of the Guinea incident on local bauxite supply remains to be assessed, and in the short term, it may provide cost support for alumina on a sentiment basis. Demand side, it faces dual pressures from domestic seasonal weakness and trade uncertainties, making significant growth difficult in the short term. Overall, positive macro factors and low inventory provide support for aluminum prices, but the off-season pressure on the demand side limits upside room. In the short term, attention should be paid to the performance of domestic and overseas demand, as well as the supply situation of bauxite.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 20 May, 2025