SMM Aluminum Morning Meeting: Macro Factors Boost Prices Amid Demand Pressures

Published: May 21, 2025 09:07

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[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.

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