According to SMM statistics, on July 2, the inventory of aluminum ingots in Guangdong was 149,000 mt; in Wuxi, it was 108,000 mt; and in Gongyi, it was 72,000 mt. The total inventory across these three locations was 329,000 mt, a decrease of 500 mt compared to the previous trading day. Looking ahead, aluminum prices have been fluctuating at highs in the recent period, which will inevitably exert a certain inhibitory effect on domestic demand during the off-season. Outflows from warehouses are expected to weaken, leading to a slowdown in destocking across the country in the second half of the month. Meanwhile, the disruptions in domestic supply and imported sources cannot be overlooked, with noticeable signs of an increase in in-transit volumes recently. Close attention should be paid to the expected increase in casting ingot production across the country in July before the signal of inventory buildup during the off-season becomes clear (for the time being, SMM suggests focusing on the key time point at the beginning of July) to determine the next direction of market sentiment.