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According to SMM statistics, on June 18, the inventory of aluminum ingots in Guangdong was 152,500 mt; in Wuxi, it was 107,000 mt; and in Gongyi, it was 67,000 mt. The total inventory across these three locations was 326,500 mt, a decrease of 1,500 mt from the previous trading day.
Looking ahead, aluminum prices are expected to fluctuate at highs overall in the near term, which will inevitably exert a certain inhibitory effect on domestic demand during the off-season. There is an expectation of weaker outflows from warehouses, putting pressure on the slowdown of overall destocking in the country during the second half of the month. Meanwhile, the disruptions from domestic supply and imported sources cannot be overlooked. Close attention should be paid to whether the year's low can be successfully broken before the signal of inventory buildup becomes clear during the off-season (for the time being, SMM suggests focusing on the key time point from late June to early July) to determine the next direction of market sentiment.
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